| FOCUS Mezzanine
welcomes requests for capital directly from potential portfolio
companies as well as from intermediaries.
First, a preliminary review of the business
model; of the historical, accountant-prepared financial statements;
of the management team; and of the reason capital is needed
will be made.
Second, a timely decision will be made about
whether a complete review of the business plan and additional
information is warranted.
Third, after a favorable review of the business
plan and other materials, the FOCUS Mezzanine Fund Manager
will either visit the portfolio company or participate in
a conference call to meet the management team, review the
company's operations, and to answer any questions regarding
the company's materials.
Fourth, after a favorable meeting, additional
information will be requested from the portfolio company and,
upon receipt of such information, a term sheet will be prepared
by FOCUS Mezzanine.
Fifth, after the execution of a mutually agreeable
term sheet and the payment of the required expense deposit,
the Fund Manager will compile the underwriting package required
by FOCUS Mezzanine and its advisory committee to approve the
transaction. In addition to the executed term sheet, the package
includes:
- A narrative describing the operations of
the portfolio company, the industry of the portfolio company,
the pros and cons of the transaction, and how the portfolio
company satisfies FOCUS Mezzanine's investment criteria.
- Historical financial statements of
the portfolio company (audited if available).
- Projections of the free cash flow to be
generated by the operations of the portfolio company for
the next five years.
- Organization chart.
Sixth, after the approval of the investment
by FOCUS Mezzanine's commitment committee, the due diligence
and legal documentation of the investment will commence.
Seventh, funding of the investment will occur
at closing when all of the documentation is complete and executed.
Depending upon the availability of information from the portfolio
company, the entire process usually takes between 30 and 60
days. |
