Investment Process
Process
At the time of approach to the Fund it would be expected that a private investor has been identified and has agreed, in principle, to invest. However, it is possible to make an approach in circumstances where a Business Angel has not been identified.
There is no formal application form but the company must submit a full business plan supported by historic accounting information and two years of integrated financial projections in quarterly or similar summary format.
The plan must demonstrate unique features, a high growth potential and a skilled, well rounded management team.
An exit strategy will need to be demonstrated in the plan and the Fund will be looking to exit in three to five years from the investment date.
The Fund will rely, to some extent, on the assessment of risk and the decision taken by the private investor together with the due diligence carried out prior to the investment.
The intention is to make the whole investment process as quick, simple and cost effective as possible and the Heads of Terms and related legal documentation will be drafted accordingly.
Typically, an investment approach will go down the following route:
- Initial enquiries and discussions with Fund Manager.
- Submission of Business Plan.
- Review by Fund Manager followed by further information, if required.
- Submission of Plan to Investment Panel.
- Presentation to Investment Panel.
- Investment decision.
- Heads of Terms and, if accepted, due diligence.
- Legal Agreements.
- Investment.
Timescales
From the submission of the final Business Plan for review by the Fund Manager to the Panel meeting is approximately ten working days.
The Investment Panel should be able to make an investment decision on the day of presentation and that decision would be conveyed to any applicant within 48 hours.
Once the offer letter has been accepted by an applicant the due diligence and legal exercise can commence and it would be expected that all parties would join into NEEMF´s legal framework documentation which is intended to save on time and costs.
Time taken from acceptance of offer to completion will vary but should in normal circumstances take no longer then four to six weeks.