WHEN ASSESSING WHETHER TO INVEST IN A FUND WE LOOK AT A NUMBER OF CRITERIA, INCLUDING THE FOLLOWING:
The team in question has to have relevant experience, and together the team members should possess the necessary strategic and operational knowledge to manage the fund successfully. The team members must be able to demonstrate that they work well together and that they have access to a strong network, which can support their investment strategy.
There is a clearly defined investment strategy, that describes in detail the value creation in the companies until their exit. The investments must comply with fundamental social and ethical principles.
The team should be among the best investors in its field and have demonstrated its ability to create returns on invested capital from previous or current investments. Results must be documented in relation to the selection of investments, the structuring of investments, the development of a portfolio companies and exit.
Structured work procedures has to have been implemented, ensuring a consistent and efficient execution of the investment strategy. The fund’s work is systematic in relation to value creation and risk management, demonstrating clear structures for the division of responsibilities. The processes cover documentation and communication – including reporting.
Structure and key terms
The fund has to have a clear legal and fiscal structure with transparent terms that conform to market practices and balance returns and risks for all parties involved.
To be considered for a possible investment from Dansk Vækstkapital, it is a prerequisite that the criteria above be described in detail. You need to submit a presentation of the fund that describes in detail how the fund intends to meet Dansk Vækstkapital’s investment criteria.