iPartners Investment Selection Process
iPartners Investment Selection Process
Investment Process (By Shannon Turnbull, 17th May 2021)
When looking for investment opportunities we work through a thorough investment selection and due diligence process where we focus on understanding underlying market dynamics of a transaction and the risk associated with it.
Our investment platform has been purpose built to remove friction from the investment process and allow individuals to easily and confidently invest in alternative assets. While alternative assets can be illiquid, we focus on investments that have a fixed timeline and a clear exit strategy.
Investment selection process
1. Source and initial screening process
At iPartners we always start our process by considering what could go wrong with a transaction. There is no headline percentage return that can offset the time, hassle and frustration from losing money / capital.
Many investments don’t proceed past this screening stage and the five primary reasons we don’t proceed with an investment are all risk driven:
- We do not know the originator / borrower (fraud risk / operational risk).
- Lack of experience / track record (all risks).
- Legal structure is overly complex (operational risk / documentation risk / complexity risk / fraud risk).
- Lack of tangible security / asset coverage (recovery risk / investment risk).
- The exit is not clearly defined (refinance risk).
The next stage is the due diligence and investment committee review process which incorporates:
- A review of the business and its operations, organisational leadership, track record, risk management, operational integrity. This can include analysis of financial models, reviews of financial accounts, analysis of lending book performance (where applicable), reviewing internal policies, due diligence calls with management teams, site visits. Competitive landscape review.
- Market conditions, demand, capacity, timing.
- Investment committee for discussion and approval, decline or revisiting approval subject to further information.
We typically partner with expert co-investors
iPartners does a thorough due diligence on any investment we make. Further, we co-invest with partners who also undertake their own thorough review. Our investors benefit from oversight by two investors who both invest in the transaction.
We seek investments where the risk / return equation is biased in the investor’s favour.
Self-directed wholesale investors
At iPartners our investors are self-directed. We don’t give advice, instead investors transact directly on a general advice basis. Registered wholesale investors can log in and access a data room where they can review all material relevant to the investment.
We focus on investments that have a fixed timeline and a clear exit strategy. Additionally, we can facilitate some liquidity through our secondary trading module; a key differentiator between us and our competitors.
Ease of registration
The registration process is intuitive and easy to follow, as is the investment process itself.
We use real time services to verify an investors identity. You will need your tax file number, bank details and a certificate from your accountant to prove you are a wholesale investor, or just provide your accountant’s details and we’ll contact them directly!
A wholesale investor can directly access critical documents via the data room. Examples of documents include:
- Summary transaction flyer
- Feasibility studies
- Term sheets
- Information memorandum
- Project information
- Risk analysis
- Partner information
- Track record
- Return calculations
Each transaction opportunity sets out all involved entities and ensures that fees are transparent.
- Select an investment amount
- Agree to transaction documents
- Confirm and settle investment
Once invested, regular updates and unit prices are accessible online via the investors personalised dashboard.