Each type of investment follows a rigorous investment process
- Identify potential market niches through a top-down approach, utilizing research and market intelligence gathering
- Continuously build and maintain the Kabir Fund network (including branch offices, funds, banks, and portfolio companies), and explore various opportunities worthy of in-depth investigation in sectors of interest
- Conduct top-down analysis in the fields of industry, market, and competition
- Perform bottom-up analysis on the intrinsic value of opportunities
- Conduct preliminary assessment of the primary value drivers and risks of opportunities
- Hold initial meetings with management
- Conduct management interviews and on-site company visits
- Verify information through channels including industry experts, upstream and downstream stakeholders
- Develop financial models for forecasting and valuation analysis
- Engage third-party professionals when necessary
Outline key variables in a non-binding term sheet to secure the investment opportunity:
- Debt: Loan-to-value (LTV) requirements, corporate guarantees, personal guarantees, share pledges, etc.
- Equity: Liquidation preferences, board seats, negative covenants, profit guarantees, etc.
- Draft and finalize legal documents
- Conduct legal and financial due diligence
- Sign definitive legal agreements
- Arrange funding for the investment
- Regular and informal management meetings
- Performance reporting and periodic portfolio review meetings to assess the financial and operational performance of reported results
Specific Assessments:
- Debt: Financial data, repayment mechanisms, collateral management
- Equity: Key value drivers and risks, value-creation initiatives, exit planning for investment positions
- Internal Reporting: Regular reporting to the investment committee and senior management
- External Reporting: Periodic reporting to communication channels and investors
- Exit Review and Planning：
Debt：
>Assessment of repayment capacity at loan maturity
>Consideration of extension options
>Assisting portfolio companies in exploring potential loan restructuring options
Equity：
>Analyzing or structuring feasible exit plans with portfolio companies
>Collaborating closely with founders and management to facilitate liquidity events (e.g., IPO, trade sale, M&A, etc.)
- The fund appoints directors and a chief financial officer to establish rigorous decision-making and evaluation mechanisms
- Conduct regular inspections, systematic annual operational reporting, annual financial statement audits, and investor annual reviews to promote the establishment of modern governance, standardized finance, risk control systems, and reward and penalty mechanisms
- Implement effective equity incentives and performance evaluations
- Deploy experienced industry experts or entrepreneurs into the management team
- Connect upstream and downstream resources within the industry
- Proactively promote industrial reinvestment and industry consolidation
- Caprilla Fund achieves exit from equity projects through diversified pathways including IPO, equity transfer, buybacks, and M&A. By incorporating ESG standards, the fund optimizes exit timing and strategies to ensure maximized investment returns while aligning with sustainable development goals.
- The exit decision-making and execution process involves evaluating the ESG performance of the investment target, market conditions, and financial returns. Exit conditions are established and implemented through methods such as equity transfers or IPOs, ensuring compliance with regulations across the Greater China region and maximizing investor benefits.