Investae

Investae Due diligence process

Initial screening

The initial screening consists of identifying investment opportunities which are aligned with our investors’ expectations and preferences.

Investment analysis

This means comparing the yield with the market, assessing how this particular investment is better or worse than others and how worth it is to invest in.

Portfolio intelligence

We will answer the question of how this investment opportunity can be a fit to investors’ portfolios and what it brings to investors’ asset allocations.

Risk mitigation policy

We will assess how the investment opportunity is protecting investors’ interests. We will identify risk factors and how the company is mitigating these risks, as well as evaluate different scenarios under which the investment may reach its objective.

External Credit rating

Credit rating reliability is set by rating agencies, evaluating a variety of factors. When available, we will review the credit rating.

General analysis

We will confirm basic facts, such as period of existence, organizational and legal forms, legal address, paid-up capital, and so on.

Financial analysis

We will review the financial analysis performed by auditors.

Legal opinion

Whenever necessary, we will request a legal opinion from a law firm. A law firm may, for example, examine the structure of the investment and issue a legal opinion that describes whether the transaction is legally structured, and which types of investors may purchase it.

Meeting with ﬁrm management

We will organize a face-to-face / online meeting with the firm‘s management.

Periodical monitoring

We will constantly be monitoring the investment offer through news, reports, market ratios and return expectations. If necessary, rebalancing may be suggested.

How do we select opportunities?

Investae attaches utmost importance to the realization of due diligence. Our primary objective when performing due diligence is to answer four basic questions:

What are the expected investment return characteristics?
What is the investment risk profile?
Are the investment managers skilled at doing their job?
Do we believe the transaction is fair for both parties?

We focus our work on SMEs based in Europe with a unique "savoir-faire”

We typically work with bond issuance between
EUR/USD 10M and 100M: senior secured debt,
convertible bonds, convertible notes, loan notes.

We work with investor that are seeking to uncover hidden value creation opportunities. We work with over 400+ investors, including wealth management companies, family offices and high-net-worth individuals looking to uncover value in the era of inflation.

91% of institutional investors plan to maintain or increase their allocation to private debt over the longer term.

Source: Preqin