Investment selection and management process

Selection philosophy. Research. Due diligence

Selection philosophy

  • SinoGulf only invests in verticals if it has a detailed in-house knowledge of the industry. This is typically obtained by the employment of leading industry experts or entire functional teams. Examples of this include our Development Management Team and Logistics personnel.
  • Potential investments are screened by all disciplines prior to detailed investigation.
  • Compelling potential investments are then analysed in detail by all the relevant disciplines.
  • All investment decisions are made by IC members.

Research

  • Market research forms the primary basis for asset selection. Research is sourced independently and from third party consultants of international calibre.

Due diligence

  • Due diligence process incorporates:
    • Tax (if applicable);
    • Legal (sale/lease terms);
    • Regulatory (ownership, holding structure, regulatory approvals);
    • Technical (site location and accessibility for RE and asset specific for PE);
    • Management;
    • Competition (market players); and
    • Financial (feasibility, accounting policies).
  • Due diligence is initially performed in house and on attaining sufficient comfort; independent third party consultants are engaged.

Investment process

Investment selection process is control by clear decision gates.

 

Sign-off:
High level fact finding
Time at risk: 5-10 days
Budget: AED100 - 200k
Sign-off:
Detailed fact finding
Time at risk: 2-3 months
Budget: AED100 - 200k
Sign-off:
Decision to acquire Holding structure, consultant team mobilisation
Time at risk: investment period
Budget: Acquisition value
Sign-off:
Decision to dispose Exit team mobilisation, check against deliverable, expectation, legal review, close out
Time at risk: 6 - 9 months
Budget: As proposed
  • Deal origination
  • Decision to commit team resources
  • Commitment to investigate in detail procuring 3rd party data
  • Investment decision IC commitment
  • Execution and management quarterly reporting
  • Exit planning and execution
Deal origination
  • High level review of assets to ensure allocation of soft resource justified
  • Preliminary investment memorandum
  • Validation of evaluation criteria
  • Initial Investment Committee sign off
Investment evaluation
  • Allocation and approval of budget for due diligence
  • Feasibility study
  • Term sheet documentation and in-principal approval from client
  • Shariah review
  • Investment Committee sign off
  • Evaluation of co-investment options
Investment monitoring
  • Quarterly reporting
  • Budget management
  • Performance tracking
  • Shifting strategies
  • Reviewing exit options
Investment exit
  • On-going management of asset and exit evaluation
  • Identification of exit route and exit valuation
  • Investment Committee approval of exit
  • Repayment
  • Auditing accounts and declaring closure

 

CAPABILITIES