The Fund’s decision making is based on the principles such as rational decision, effective risk control and high efficiency, and our deal execution process consists of initial screening, due diligence and evaluation, transaction negotiation, investment decision, project management and exit.
Screening and Project Initiation
-On the basis of preliminary screening and investigation, The Company will conduct an initiation of projects that match The Fund’s criteria in terms of investment value and feasibility.
Due Diligence and Evaluation
-For the initiated projects, a project team is formed to undertake due diligence that contains areas such as company background, management team, industry background, core competence, operations, finance, legal issues, business plan.
-The Company sources specialists in various industries for professional consultation according to the need of the project, while employing accountants, lawyers, valuators in the process of due diligence of target projects.
-The Company’s Committee of Investment Decision is responsible for the formation of investment principles, project screening, project management and investment decisions. In case that the amount of an individual investment is restricted, the final decision will be made by the board of The Fund on the basis of the Investment Plan submitted by The Company.
-When the investment has been completed, The Fund will be participating in the key decisions of the invested company according to periodically collected information on the financial and operational performance, risk alert system of the invested company.
-The Company will be planning and conducting the exit strategy based on the industrial status quo, macro-economic environment and the performance of the invested company. Potential exit will be realized through shares selling after IPO, purchase other shareholders, MBO and buyback by the invested company.