The team follows a rigorous investment selection process to carefully screen investment opportunities and select only the most suitable. Our deal sourcing, screening and selection process is as follows:

Sourcing

Performance Equity sources investments from our extensive network of top performing general partner relationships. We target deal partners with demonstrated performance and expertise in the relevant investment sector

Screening

Our disciplined investment selection process ensures that all investment opportunities are properly screened and only the most attractive are selected for potential investment. Key questions in the screening process include: How does the fund differ from its competitors? How does the company’s product or service offering set it apart? How durable and adaptable is the strategy over time?

Due Diligence

The team develops a detailed profile of the sponsor and its investment strategy. Research is conducted to gain insight into a company or fund and to gauge its competitive position. The team reviews detailed financial projections and valuation models to assess financial risk and quantify potential returns.

Team Approval

We evaluate the merits of the investment and identify any outstanding due diligence issues. If the proposed investment passes preliminary approval, final due diligence is undertaken. The deal team will then present a summary memorandum to the Investment Committee for approval.

Investment Committee

The Investment Committee will review the investment and determine whether it is appropriate for the portfolio.

Negotiating Terms/Structure

Upon the Investment Committee’s approval, members of the investment team, together with legal counsel, work with the deal sponsor or fund manager to negotiate key terms and conditions.

Monitoring

Performance Equity closely monitors its investment fund activities. We actively participate by serving on partnership advisory boards, proactively addressing potential organizational issues and discussing strategic concerns of the general partners.