Following our investment in a platform/target company, we move to the monitoring and implementation phase of a ‘Vital Flow Chart’, under the supervision of the Portfolio Management Team and in coordination with external consultants, when necessary. The ‘Vital Flow Chart’ focuses on the most important matters and issues facing the now ‘portfolio company’ and that need to be addressed in the first 100 days of the investment.
There are several methods of monitoring the performance and assessing fair value of investments in portfolio companies, which may include, but are not limited to, the following:
- Assessment of success in adhering to the business plan and compliance with financial covenants,
- Periodic and regular contact with a portfolio company’s management and, if appropriate, the founding shareholders, to discuss financial conditions, capital requirements and milestones,
- Relevant benchmark comparisons to peer companies in same sector/industry,
- Vigilant attendance and active participation in portfolio companies’ boards and ExCom meetings; and
- Review of periodic (monthly, quarterly) financial data, prepared budgets and variations thereof, and updated versions of the business plan.