ATEP has a streamlined investment decision-making process designed to provide timely feedback to managers looking to raise funds. The directors of ATEP are the key decision makers in the investment process which combines a qualitative and quantitative approach. An important part of due diligence is on site management team meetings where ATEP seek to meet the senior and junior investment managers and understand the underlying fund investments and track records.
Research
ATEP actively researches the European Private Equity market place and has developed a proprietary database designed to monitor the activity of private equity managers and their funds. ATEP is keen to meet managers outside the fundraising process in order to build manager relationships and understand their investment strategies. In addition, ATEP actively pursues its relationships with advisers and regularly meets with placement agents to gain a perspective on the market place and identify fund investment opportunities.
Review
The initial review process has the objective of ensuring that the opportunity fits ATEP’s investment policy and is consistent with ATEP’s investment criteria. One of ATEP team will be allocated to the investment opportunity and will make an assessment as to whether the opportunity merits meeting the manager and undertaking further review. A key focus at this stage is the team, strategy, track record and deal flow.
Assess
Following the review stage, ATEP meet as an investment team to assess the opportunity. Often some additional information on the key areas will be requested in advance of this meeting. The objective of this meeting is to decide whether to proceed with the opportunity and to set broad parameters on the terms acceptable to ATEP.
Where ATEP decides to proceed, ATEP will conduct some detailed due diligence of the manager and its past funds. The due diligence process will usually be conducted internally by ATEP and will include detailed discussion with the investment team on track record and performance, investment strategy, deal flow, the managers industry networks, investor reporting and procedures, due diligence practices and detailed third party referencing.
This process gathers the information required to make a decision on whether to invest in any given fund and enables ATEP to resolve any issues that have arisen from the diligence process.
Approve
Once due diligence is completed, the results are presented to the investment committee and a final approval decision is made. Where appropriate, ATEP will advance to negotiating and agreeing the investment terms and legal documentation.
Monitor
ATEP adopts an active approach to monitoring its investments. As part of this approach, ATEP takes a seat on the fund advisory board and maintains regular contact with each investee manager. This enables ATEP to understand the dynamics of each fund and have visibility of potential co-investments. ATEP, through its partnership approach with the private equity fund managers, will also meet with the managers on a regular basis to discuss portfolio issues and opportunities.
| Alliance Trust Equity Partners Limited is authorised by the Financial Services Authority to conduct regulated activities related to corporate finance business and venture capital. It does not engage in FSA regulated activities for retail clients as defined by the Financial Services and Markets Act 2000.
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