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September 6, 2023

What operational and financial monitoring do you conduct post-funding?

Robust monitoring includes covenant tracking, milestone management, audits, risk profiling, stress testing, and transparent reporting to allow early risk identification.

September 6, 2023

How do you structure investments into high growth companies to mitigate risks?

Milestone-based capital deployment, ratchets, installments, and other incremental funding based on derisking events and attaining KPIs decreases risk in startups.

September 6, 2023

How detailed are the financial models and projections you require from sponsors?

Detailed long-term models projecting cashflows, ratios, contingencies, operational metrics, and financing terms under varied scenarios are required to fully diligence risks.

September 6, 2023

Do you conduct technological due diligence internally or use third party experts?

We leverage both internal engineering resources and respected third party specialists to diligence specialized technology, construction, and operational risks.

September 6, 2023

How does portfolio concentration risk management differ from traditional credit limits?

Along with typical exposure caps, we also limit sector overlaps, technology risks, macro factor correlations, and other portfolio-level risks not addressed in siloed limits.

September 6, 2023

What kinds of project insurance do you require sponsors to carry?

Typical policies include builder’s risk, business interruption, general liability, cyber security, key person coverage, and specialized policies depending on asset types involved.

September 6, 2023

How do you structure equity investments to balance risks?

Preferred stock, warrants, liquidation preferences, conversion options, pro rata rights, negative covenants, and other instruments align equity risks with growth-stage companies.

September 6, 2023

Do you conduct background checks on management teams?

Yes, background checks along with professional reference diligence provides critical data on execution experience and trustworthiness of sponsor teams who ultimately drive repayment.

September 6, 2023

Do you require full recourse to sponsors?

Recourse requirements are based on overall deal structure, collateral coverage, and risk assessments. We avoid deals requiring full recourse except for narrowly tailored carveouts.

September 6, 2023

What credit enhancements do you require on high risk loans?

We utilize guarantees, insurance wraps, hedging strategies, overcollateralization, intercepts, and other credit protections to offset risks that can’t be directly mitigated.