Investment Process
Each investment is subject to intense scrutiny and due diligence and must meet the Fund’s eligibility criteria with strict concentration limits on geography, project type and issuers.
Step 1
Origination
- Identify market opportunities in sectors and jurisdictions with strong credit characteristics and attractive relative pricing
- Leverage relationships with lending banks and infrastructure owners
Step 2
Initial screening
- Eliminate assets unlikely to pass investment approval
- Identify strong credits for inclusion in shortlist for full analysis
Step 3
Detailed credit analysis
- Due diligence and credit processes
- Site visits, meetings with management, as appropriate
- Run proprietary analytical models, if applicable
- Determine risk characteristics and mitigants
- Ensure no diversification, concentration or other limits are broken
Step 4
Investment Committee review
- Full credit memorandum and valuation/yield analysis is provided to the Investment Committee for review
- A unanimous investment decision is required in order to make the recommendation to the Alternative Investment Fund Manager (AIFM)
- Investment Committee minutes, credit memorandum and any other material credit documentation are submitted to the AIFM for detailed review
- Investments with certain characteristics are reviewed by Board’s Risk Committee
- The AIFM has full discretion on recommendation to approve or decline investments
Step 5
Acquisition and ongoing monitoring
- Investment Adviser executes the trade once the recommendation is approved
- Execution of appropriate currency hedge, as necessary
- All ongoing credit monitoring and updates including the Investment Committee reviews are sent to the AIFM
- Every asset is monitored semi-annually at a minimum, and more frequently when required
- A full portfolio presentation is provided to the Board semi-annually in addition to quarterly Board reviews