Investment ProcessWe seek opportunities relying on our sophisticated financial, competitor and market intelligence network to discover targets which match our investment criteria. We will consider a broad range of transactions, including leveraged or management buy-outs, recapitalisations, or generational ownership transition.
When we have established a strong prospective investment, we embark on detailed due diligence so that we can generate both qualitative and quantitative data about the company profitability, offering, cost base, pricing position and other relevant factors. This allows us to analyse in granular detail the sources and drivers of value within each potential target and reach an informed view whether or not to proceed.
Of the opportunities which we do investigate, we will only focus on the ones that present a fit for our portfolio, offer exceptional potential for extended profitable growth, and have a clear exit, usually within a three to five year horizon. We generally target a minimum IRR and return hurdle rates dependent on the risk/return profile. Typical exits are by IPO or secondary or trade sale. Transactions are structured to meet the objectives of all parties and may include seller preferred notes or rollover equity, management equity and Seera equity.
We do not aspire to have operating control or be involved in the day-to-day management of our portfolio companies. Instead, we monitor progress through direct board participation and regular one-to-one meetings, usually involving individuals with relevant industry expertise.
We support the executive team to develop a business plan with clearly defined targets and accountabilities, focused on key drivers of value within the business. These efforts would be backed by the necessary management incentives, and regular reporting responsibilities. We also provide strategic, financial and operational support for growth initiatives and help to identify, negotiate and complete acquisitions. Through our strong knowledge, understanding and relationships in the MENA region, we also provide strategic support to our companies assisting them in establishing a footprint or in expanding their growth in the region.