Investment 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.

Deal origination

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

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

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.

Due diligence

In depth due diligence performed (financial, technical, tax, legal and environmental depending on the project) is outsourced.
Full and comprehensive due diligence

An investment appraisal paper

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 chart

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 optimize performance.

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