Page 50 - Praetura EIS 2019 Fund Information Memorandum
P. 50
How Do We Value Investments?
Aligning Goals
Investing early enables us to access exciting opportunities at lower
valuations than our competition.
Successful early stage investment needs aligned goals, financial
incentives and attitudes to risk more than a single focus on valuation
Goals
multiples. Accordingly, we structure deals to ensure alignment of
interests between investors and management teams.
Aligning Risk
We include prior return mechanisms on the majority of our
investments to limit downside risk.
We also seek to provide incentive ‘ratchets’ to management such
Risks that they can achieve their personal goals once we, as the investor,
have achieved a return in line with the risk inherent with the
investment.
