Initially CFM will assess private investor syndicates and specific investments on a deal-by-deal basis but over time it is expected to move to a position where the Fund has a number of ‘pre-qualified’ partner syndicates. After completing several transactions together CFM expects to have formed closer syndicate partnerships, which will enable the Fund to make a more rapid assessment of future eligible businesses that are being considered for investment by a partner syndicate.
What Co-Fund will NOT do
- Promote investment opportunities
Co-Fund NI engaging with a Company should not be considered a validation or endorsement of it as an Investment opportunity - Lead investment rounds or set the terms of investment
- Carry out independent due diligence (expect private investors to have carried out adequate DD and share outcomes with Co-Fund NI)
What Co-Fund WILL do
- Seek pre-qualification of investors and investor syndicates, but on a deal by deal basis initially, assessing investors as well as investments
- Engage with Investors as much as Companies, ideally it will be the investors making initial contact with the Fund
- Assist private investors where required for example with setting out term sheets, discussing valuation principles and providing guidance on due diligence and the investment process
What the Co-Fund will need to progress
- A proposed investment where the investor is seeking engagement from the Co-Fund NI
- Investor confirmations that they are a HNWI and/or Sophisticated Investor as set out the Financial Services and Markets Act 2000 (available on request once a specific deal is progressing)
- Signing up to a set of Terms and Conditions for engagement with Co-Fund NI for the investor, and any connected person investing alongside the investor (available on request once a specific deal is progressing)
- Ideally a term sheet which the Fund can adjoin (template available on request once a specific deal is progressing) setting out terms, any gap in funding and expected due diligence process
- Engagement in a structured and planned due diligence process and sharing of information with the Fund