Investment policy
Fund the growth curve.
Then hedge the position behind it.
Our policy follows a company through four stages, each financed by a different instrument on the same balance sheet. The cost of capital falls as the relationship matures — and the downside is covered before the upside is underwritten.
The capital stack
Venture lending
Entry
We enter at Series A to Series D with senior secured debt of USD 2M to 40M, sized to contracted revenue and to the runway the operating plan actually requires. Interest-only periods run to twelve months; covenants are tested on revenue and liquidity, not on EBITDA the company does not yet have.
Growth capital
Expansion
Once retention is proven, structured preferred equity of USD 10M to 50M funds the next two years of expansion in a single cheque. We take minority positions only, with an observer seat, four reporting lines and no consent rights over ordinary-course decisions.
Bonds & structured credit
Term out
Seasoned facilities are refinanced into private placements of five to seven years, matched on duration, currency and rate. This is what lets us hold pricing through a repricing market instead of calling good companies to protect our own funding.
Insurance & risk
Protection
Credit, key-person, D&O and asset cover are placed at close, not promised for later. Portfolio-level cover and a reserved pool sit on top, sized on the assumption that the policy does not pay.
Underwriting discipline
We underwrite the downside first.
Downside first
Every facility is underwritten against the case in which the company misses plan by a third and the next round is eighteen months late. If the structure only works in the base case, we do not write it.
Independent committee
Approval sits with a committee that reports to the board, not the deal team. No relationship is large enough to bypass it, and no partner can sign alone.
Hedge before draw
A commitment is matched with its bond line or insurance cover before the first tranche is available. We never lend first and look for protection afterwards.
≤ 8% of AUM
Single-name exposure
≤ 20% of AUM
Sector concentration
60 months
Maximum lending tenor
≥ 30%
Hedged share of exposures
House limits are reviewed quarterly by the investment committee and may be tightened between reviews. They apply to every facility, whether held on balance sheet or placed with noteholders.
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