Investment Process

Our Investment Appraisal Process

The investment appraisal process can be split into 5 stages as follows and as shown in the chart below. This process applies for both new and existing opportunities.

Stage I - Deal origination

  • Identification of investment opportunities (deals)
  • Minimum deal size BWP30 million
  • Sectors: all sectors of the economy
  • Tenure: 5 to 15 years

Stage II - All opportunities are reviewed on a weekly basis by the Investment team. Collation of data to conduct preliminary analysis and financial modelling.

  • Initial project screening
  • Preliminary due diligence and financial modelling
  • High level term sheet and initial negotiations

Stage III – engagement with Risk and Legal team for their input.

  • Preparation of a brief Memorandum and financial model to share with Risk for input
  • Indicative term sheet preparation and negotiations for Risk and Legal input before sharing with client.

Stage IV – in depth due diligence performed (financial, technical, tax, legal and environmental depending on the project) is outsourced.

  • Full and comprehensive due diligence

Stage V – analyses and collates all the gathered information from the above stages into an investment appraisal paper incorporating input from Risk and Legal for approval based on approval limits.

  • Credit and Investment committee Approval (investments not exceeding BWP50 million)
  • Board Risk and Investment Approval (investments not exceeding BWP150 million)
  • Board Approval (investments exceeding BWP150 million)

A comprehensive project appraisal flow is as shown in the chart below:

Portfolio Management

  • Ongoing active management of portfolio companies post disbursement (financial and operational monitoring);
  • Assessment of portfolio companies and recommendations for possible divestment and/or restructuring to optimise performance.