Grovest’s investment strategy is to utilise the Section 12J Venture Capital Structure as a base to create individual funds that invest in high growth, sector specific verticals. This strategy allows the investor to leverage the tax incentive in order to achieve above average risk adjusted returns.
Grovest provides investee companies with the capital and management support they need to optimise their potential and generate value through improved strategic, operational and human resource capabilities.
Depending on the mandate of the fund the investment committee will generally invest in companies will with the following attributes:
- Business models with potential for rapid growth in revenues and profitability;
- Defensible market positions;
- Strong, balanced and well-motivated management teams that hold meaningful shareholdings in their companies;
- Attractive entry prices;
- Opportunities for Grovest to add value;
- The prospect of exiting with a meaningful investment surplus over a five year period.
Grovest has developed a rigorous investment process to ensure the highest standard of investment decision making. Investment opportunities will be investigated by Venture Capital Management Services (“VCMS”). VCMS is managed by professionals with over 100 years’ experience and successful track records in private equity and venture capital investment.
Qualifying investment opportunities will be selected for further due diligence and financial modelling. Such due diligence will comprise a comprehensive review of management (capabilities, roles, history, shareholding etc), the market in which the company operates, its competitive position within the market and the opportunities and risks facing the business.
VCMS may also appoint specialist professional advisers to assist with investigation if required.
If there is a satisfactory outcome to the due diligence process, a formal proposal will be submitted to the Grovest investment committee for consideration.