Page 58 - Praetura EIS 2019 Fund Information Memorandum

We assess every lead we receive against our investment criteria. This normally involves a
desktop review, followed by meetings or short calls with Management as required.
1 We quickly decline opportunities that don’t match our strategy. If we decide to turn down a lead,
Assess
we inform management and provide honest feedback. In some instances, we agree to stay in
touch to see if a deal can be struck at a later date, or put them in touch with an alternative investor.

Each opportunity is reviewed in respect of our core criteria: Management, Model, Market,
Momentum, Money and More than Money (the “5Ms”).
2
Evaluate We give each opportunity a grade from A to E for each of the 5Ms, using our internal grading
tool. Management receives the greatest weighting. This produces an overall opportunity grade The
team then focuses future work on key risk areas identified during the evaluation phase.

We produce a full Investment Proposal for the Investment Committee, including an in-
depth analysis of each of the 5Ms.
3 Prior to submission to the Investment Committee, the proposal is assessed, refined and

Proposal
approved by the entire investment team and relevant members of the portfolio team. The
proposal identifies the critical factors for further diligence, and summarises items on the
ongoing Risk Register. It also highlights the proposed deal, including all key terms which differ
Investment Process from our ‘house standard’.

We undertake a detailed diligence process,
involving third party experts and the entire Praetura
4
Investment Team.

Our Offers include in-house standard key terms and conditions which
are only amended with Investment Committee approval.

The Offer will include an explanation of the due diligence process to be
followed in order to complete the transaction. The Investment Committee
provide delegated authority to one of the Investment Committee Members
to negotiate and agree a deal within acceptable parameters.