Our investment approach seeks to preserve capital and maximise returns to investors, achieved through a holistic evaluation of all transactions. Our experienced in-house investment team conduct a rigorous due diligence process supported by a panel of trusted external legal, tax and technical advisors on the following aspects:
- Macroeconomic conditions and industry dynamics supported by industry research
- Funding rationale
- Serviceability underpinned by historical and future profitability and CFADS generation
- Security, collaterals and downside scenarios
- Characters, experiences and incentives of management team. Credit checks are conducted on directors and beneficial owners who are often required to provide personal guarantees for the loans.
- Interview with management and key stakeholders
- Detailed review of capital structure, existing financial liabilities and strength of financial sponsors
- Legal, tax and operational aspects, including a review of corporate structure, contracts, taxes, operational liabilities and insurances
- Due diligence could be conducted in conjunction with equity sponsors and/or other syndicate members
All transactions require approval from Credit Committee documented in preliminary credit papers, final credit papers, term sheets and due diligence reports. The Credit Committee, comprising members with extensive credit assessment experiences, focus on all aspects of the transaction, in particular downside risks to ensure capital is deployed in an efficient and consistent manner.