Investment Process

A step by step guide to the investment process. Click on each of the tabs on the left hand side to view each step of the process.

The Process

Addressed by ready-made investment pipeline

We would be open to our partners investing in the pipeline opportunities ahead of Arie closing.

Company
Description
Size
Investment Rationale
Country
**Updating More new companies under review

Investment Process

Arie follows a rigorous and comprehensive investment process.

Arie
Contacts

Advisory Board Members

Local VCs and Intermediaries

Communities
and
Networks

ORIGINATION
 

Initial
Screen

Internal
Due
Diligence

Business Development
 

IP
available
 

EVALUATION INCLUDING GLOBAL BD


Detailed Due Diligence

Investment Committee Decision

Structuring
&
Negotiation

Funding
 
 

EXECUTION
+IP
ISSUES


 
 

 

Advisory Board Involvement

Proactive Company Involvement

Active Business Development

MONITORING
 

 
 

 

Options Analysis
 

Advice From Intermediaries

General Partner Decision

EXIT
 
 

DD Process (Evaluation)

Arie will conduct comprehensive Due Diligence on opportunities.

Initial Screen

Advisory Boards

Internal Due Diligence

Investment Advisory Committee

EVALUATION

  • A member of the Arie team will conduct an initial review and log for weekly review by Arie’s Investment Team
  • If approved then further review including management meetings shall be carried out and a summary provided for the Advisory boards
  • Should initial feedback be positive then the deal team will then begin the full due diligence process with commercial due diligence, including meetings and strategic discussions with managers of the target company to go in-depth into their business plan and financial projections, customer and supplier calls, management reference checks, and market analysis
  • A comprehensive document which includes customer and supplier calls, references and other relevant due diligence material called the “Deal Qualifying Memorandum” or “DQM” will be forwarded to the General Partner upon approval by the Investment Advisory Committee

DD Process (Execution)

Arie will conduct comprehensive Due Diligence on opportunities.

Detailed Due Diligence

General Partner Decision

Structuring & Negotiation

Funding

EXECUTION

  • If satisfied with feedback from the Investment Team, the Investment Advisory Committee and the Advisory Boards with regard to the results of the commercial due diligence, the General Partner will instruct the deal team to commence accounting and legal due diligence
  • The deal team may use external third party support for technical, legal and accounting issues, and the Advisory Board Members may be asked to participate in this process as appropriate
  • Final negotiations with the management of the investee company are expected to formally commence once commercial due diligence is near completion
  • Funding: Upon nearing the completion of due diligence, the parties will begin preparing documentation for the transaction. The deal team will suggest to the Board of Directors the capital and appropriate ownership stake the Fund should commit to a particular round in a given investment. Once all agreements are reached and final approval of the Board of Directors is obtained, the General Partner will close the transaction

Deal Structuring

  • Pricing and general structure discussions are likely to begin during the initial screen
  • The Fund will consider any equity-linked structures for its investments that are attractive in a particular situation, although preferred positions will be sought where possible
  • Responsibility for the terms of the investment will rest with the General Partner, advised by the deal leader and the deal team
  • The deal leader will obtain approval from the Investment Advisory Committee for expenses including commercial, accounting and legal due diligence costs, closing fees, and banking costs
  • The deal team will also suggest potential financial or strategic co-investment partners as appropriate

Post Investment

Advisory Board Involvement

Proactive Company Involvement

Active Board Participation

MONITORING

  • Arie takes a hands on partnership approach when working with our portfolio companies
    • Board seat plus direct involvement in one or more functional areas
    • Significant presence at the company – sense check reality to reporting
    • Lead/co-lead role in step change issues e.g. international expansion, financing and exits
    • Recruit and incentivize management teams with aligned interests
    • Access to corporate and relevant network of potential investors, business development leads and potential customers management teams with aligned interests

Reporting and Governance

Arie will report to LP’s as per standard market practice.

Report
Frequency
Key Elements of Disclosure
Fund status Quarterly - Target fund size; commitments; closing dates; invested capital; number of investments; non-invested capital
Portfolio status (per company) Quarterly - Investment size; shareholding; target IRR; top level P&L; key developments; any conflict issues
Fund time plan (plan vs. actual) Quarterly - Monthly breakdown of commitments and capital calls
Annual valuation summary Annual - NAV report
- Audited statements could be prepared if requested by anchor investors
- Year ahead management fee budget

Risk Management

Risk Identified
Risk Management
Capital Focus on strategies that are diversified across early growth and late stage to get a portfolio with blended liquidity targeting a 25-35% IRR for investors.
Correlation Focus on strategies that have a proven ability to be both synergistic and diverse to one another and global markets. Key focus on structurally protected strategies with a path to liquidity with meaningful downside protection.
Diversification Have the manager pipeline in place that is large and diverse enough to provide LPs with a compelling portfolio from the onset.
Scale Build on a solid foundation of existing infrastructure to build an operationally intensive and focused team with geographic diversity.
Transparency Will provide transparency starting on day 1 from an investment and deal flow level to its investors.
Conflicts of Interest 3rd party conflict review committee in place to review all affiliated transactions and dealings.
Expertise Arie General Partners have over 50 years combined experience and will be supported by a qualified Advisory Board.
Alignment Partners co-invested alongside other limited partners.