While our organization is global and we try to run our deal vetting through our senior partnership structure. In turn, each transaction that we accept is assigned to a particular partner for management and monitoring.
A few core principles or filters to apply are as follows:
We are not a traditional bank or lender. We do not lend money or invest in ideas, dreams or endeavors that are not fully formed and are not accompanied by unencumbered real estate, perfected patents (for disruptive technology) and viable market needs. We generally will immediately pass on options to buy land, mineral rights with no established operations or market, any type of mezzanine or secured financing we are not principles in and any transactions we can not speak directly with the principle involved.
Regarding real estate, we will generally require clean ownership of property, permitted plans and often 20% of the requested development costs being placed in a non-depleting cash account against 100% financing on our part. We only get involved in principles and are not interested in being an investor or venture fund. We are not interested in being taken out at the end of a deal or development that does not meet our SRI principles. Also, if the developer is tapped out, this is usually a strict no-go. Our operational time frames do not generally operate well for desperate principles or those under unrealistic time pressures.
All materials need to be available and well put together. We will not weed through pages of mysterious facts and figures or first drafts of dreams, visions or ideas. Assets need to be accompanied by full provenance, title and authentication. Government guarantees need to be documented. Land needs to be owned. Businesses need to be beyond incubator stage and hopefully into income generating.
As we enter into each accepted project or transaction on a 100% basis and assign resources accordingly, we tend to exclusively look at ($100M++ for real estate and Energy/Gas) Our costs are the same on a $100M and 500M project. Therefore, our ROI and long term prospects are higher on larger deals. Fiber Optics, Micro Grid plus preferably services is where we make our investment bank with the Velocity of Time v Money.
We will not engage with intermediaries. We need to talk directly with the principles or the mandates to be able to have direct contact. While we operate a no load structure on our side, we will acknowledge, protect and facilitate any fee arrangement that projects principles made with third parties. We operate and can open a respectful process based upon trust, cooperation and a common economic and social vision.
While somewhat cursory, hopefully the above will give you an idea of our cut off points and basic principles that we use to weigh each proposed transaction.