Our Post-investment monitoring services offer investors flexibility and reassurance through:
• On-going discreet business intelligence monitoring and regular reporting on the investment, including the key people and entities involved.
• Focused, discreet and customised investigations to clarify specific issues of concern/potential concern regarding the investment as issues are uncovered, either during our regular post-investment monitoring process or arising from the investor’s own monitoring of the investment.
Key Areas of Inquiry
The key points of inquiry during post-investment monitoring are client and/or investment specific, but most frequently cover:
• Changes to the corporate structure
• Reputational issues with associated entities (e.g. vendors, suppliers, competitors and trade bodies)
• Business interests of the key principals
• Any litigation involving the company or associated individuals
• Pertinent labour issues
• Bribery or corruption related concerns
• Regulatory issues that could impact upon the investment
• Environmental or social compliance issues
Post Investment Monitoring follows the approval of any type of funding. The PIM team proactively monitors all loans, guarantees, quasi-equity and equity investments on a continual basis to ascertain the quality of our clients’ book and identify early warning signs of deterioration. This ensures that we are able to take timeous action to protect our client’s interests and prevent, or at least limit, any financial losses from occurring. PIM’s monitoring activities include:
The receipt and analysis of client financial statements.
The analysis consists of: comparing statements against the approved projections as provided at the time of fund approval; and verifying adherence to pre-determined covenants, undertakings and milestones as per the funding agreement
Conducting annual business reviews.
Clients with high-risk profiles are prioritised and challenges identified and timeously addressed. Intervention may include recommending Business Support. Where rightfully able to, and deemed necessary, we will appoint a director to serve on a client’s board and board committees to protect our client’s rights as an equity investor.