TRANSACTION  INVESTMENT  CRITERIA  

&  PROCESS    

CONTENTS  

                                                                                                                                                                                   

Section  1          -­‐        Legal  Disclaimer                                                                    

Section  2          -­‐        Investment  Program  Overview              

Section  3          -­‐          Investment  Criteria                                                                          

Section  4          -­‐          Investment  Process                          

Legal  Disclaimer    

.  

IMPORTANT:   By   reading   beyond   this   point,   you   agree,   acknowledge,   and   accept   that   this   is   a   private   encoded   communication   of   privileged,   proprietary,   and  

confidential   information   and   you   agree   to   keep   it   private.   The   sender   is   a   Consultant/Intermediary   and   makes   no   warranties   or   representations   as   to   the  

information  and/or  documents  provided  and/or  to  any  financial  transaction(s)  that  may  result  from  this  information.  Further,  all  due  diligence  is  the  full  and  sole  

responsibility  of  the  Principals  involved.  

 

DISCLAIMER:  As  this  document  is  typically  passed  on  via  intermediaries  to  potential  clients,  it  is  important  to  note  that  an  intermediary  can  NEVER  quote  definitive  

returns  or  procedures  to  a  client.  Intermediaries  may  have  knowledge  of  past  historical  details  but  these  details  are  not  necessarily  predictive  of  future  procedures  

or  results.  Only  the  programs  provide;  in  direct  discussion  with  the  client,  has  the  ability  and  authority  to  give  any  specific  quotations  for  future  potential  results.  

Hence,  the  client  can  only  know  the  definitive  details  of  a  potential  transaction  as  a  result  of  discussions  with  the  program.  The  client  will  have  the  details  that  can  

be  definitively  relied  upon  ONLY  after  the  final   issuance  of  a  contract.  This  document   is  NOT  to  be  relied  on  as  a  definitive  source  of   information  related  to  this  

program,  as  all  details  may  be  subject  to  change  the  client  MUST  refer  to  the  final  contract  provided  by  the  program  provider.  

The   sender   is  not  a  United  States  Securities  Dealer  or  Broker  or  U.S.   Investment  Adviser.   The   sender   is   a  Private   Investor  and   Introductory  Service  Provider   for  

borrowers  and/or  clients  to  the  various  contacts  that  suit  their  business  needs  at  only  at  their  request.  The  sender  does  not  provide  any  funding,  bank  instruments,  

bank  guarantees  or  other  financial  instruments  or  commitments  of  any  kind.  This  document  and  any  related  documents  are  never  to  be  considered  a  solicitation  for  

any   purpose   in   any   form   or   content.   This   communication   (including   any   attachments)   is   covered   by   Electronics   Communications   Privacy   Act   18   U.S.C.   2510-­‐

25212701-­‐2710,   3121-­‐3126   and   is   confidential  &   legally   privileged.   Information   contained   in   this   document   is   intended   for   a   specific   individual(s)  &  purpose  &  

therefore  is  protected  from  disclosure  under  the  Gramm-­‐Leach-­‐Bliley  Act.  Upon  receipt  and  acceptance  of  these  documents,  you  as  the  Recipient(s)  acknowledge  

this  warning  and  disclaimer.  

C    O    N    F    I    D    E    N    T    I    A    L  

Investment  Program  Overview  The  investment  approach  is  an  "active  investment",  an  investment  style  whose  main  feature  is  to  take  majority  or  substantial   minority   stakes   in   portfolio   companies   and   work   alongside   executive   management   and   other   main  shareholders   towards   a   common   goal;   that   is   to   create   value   over   time   by   building   successful   businesses.   This  approach  favors’  a  relatively  long  term  perspective.    Strategy    

• Proactively  source  outstanding  direct  private  equity  investment  opportunities,  including  investments  sourced  through  Lloyd  Bancaire’s  fund  manager  relationships.  

• Execute  independent,  rigorous  investment  analysis,  emphasizing  a  comprehensive  due  diligence  program.  • Actively  apply  Lloyd  Bancaire  operating  skills,  experience  and  resources  to  drive  equity  value  creation.  • Construct  a  diversified  portfolio  of  direct  investments  in  high-­‐quality  companies.  

 Portfolio  Construction  Our  goal  is  to  diversify  our  portfolios  across  multiple  variables,  as  follows:    

• Company  Size  and  Stage  of  Development:  Includes  early-­‐stage  and  emerging  growth  companies,  middle-­‐market  companies,  and  larger  companies  with  revenues  in  excess  of  $5  to  $500  million.  

• Industry:  Exposure  to  multiple  attractive  industry  sectors  within  the  Americas,  Europe  and  Asian  economies.  

• Time:  Investments  made  in  portfolio  companies  over  a  three-­‐  to  four-­‐year  period.        Size  and  Stage  of  Development    

 

Investment  Criteria    

Lloyd   Bancaire   invests   in   the   early   and   expansion   stage   companies   throughout   the   Americas,   Europe   and   Asia.  Lloyd   Bancaire’s   diversified   investment   strategy,   but   each   potential   transaction   must   fit   our   general   selection  criteria.  

We  invest  from  $10  to  $500  million  in  equity  over  the  life  of  an  investment  and  partner  with  businesses  that  have  the  potential   to   be  market   leaders   and  demonstrate   the   following   characteristics:   Client  must   have   ten  percent  Minimum  of  (10%)  liquidity.    Lloyd  Bancaire  employs  a  disciplined  and  conservative  investment  approach.  We  exercise  intensive  due  diligence,  seek  purchase  prices  that  are  lower  than  average  multiples,  and  focus  on  the  industries  we  know  best.  (Financial  Services,  Infrastructure,  Telecom,  Media  &  Entertainment,  Energy  &  Power,  Industrial,  Real  Estate,  Hospitality  &  Hotels,  Healthcare  &  Life  Science,  Consumer  &  Retail,  Transportation,  Manufacturing  and  for  other  please  contact  the  Client  Development  Team)  

• Rapidly   Growing   Market  We   pursue   companies   that   operate   in   large,   rapidly-­‐growing   or   transforming  

markets.  The  typical  markets  we  pursue  are  experiencing  dramatic  changes  because  of  new  technologies  or  

regulations,  or  changing  customer  sentiment.  • Clear   Product   or   Service   Need  We   invest   in   companies   developing   products   or   services   that   address   clear  

inefficiencies  or  needs  in  the  market.  These  incrementally  novel  approaches  often  require  less  time  and  capital  

to  be  successful,  and  can  capture  significant  value  through  management’s  ability  to  balance  vision  with  speed  

and  superior  execution.  

• Capital   Efficient   Business   Model   Capital   efficiency   and   the   ability   to   harness   global   resources   are   two  

important  characteristics  of  each  investment  in  our  portfolio.  Across  the  Business  Models,  we  seek  investment  

opportunities  that  can  scale  quickly  with  a  reasonable  amount  of  capital  investment.  

• Strong   Management  The   quality   of   a   company’s   management   team   is   a   critical   factor   in   determining   the  

overall  success  of  the  business.  We  leverage  our  human  capital  network  and  advisory  relationships  to  play  an  

active  role  in  helping  attract  additional  top-­‐tier  talent.  

• Early  and  Expansion  Stage  We  invest  in  early-­‐  and  expansion-­‐stage  companies.  Early-­‐stage  companies  typically  

have  established  proof-­‐of-­‐concept  for  their  technology  or  service,  and  often  have  a  senior  executive  in  place  

who  is  an  experienced  leader  in  his/her  field.  Expansion-­‐stage  companies  typically  have  generated  meaningful  

revenues  (for  Business  Services  companies),  or  substantial  data  or  FDA  approval  (for  Life  Sciences  companies).  

 

 

 

 

Investment  Process  

 Our   rigorous   investment   process   incorporates   all   of   our   professionals   and   ensures   exhaustive   research   is  performed  on  every  transaction.  Due  diligence  includes:  

Detailed  industry  and  market  research   Quantitative  analysis   Detailed  financial  review   Reference  checks  on  management   Reference  calls  with  key  company  customers  and  suppliers  

 

 

 

 

 

 

 

 

 

 

 

 

 

The  overall  process  is  as  follows:    

From  the  moment  Lloyd  Bancaire  has  all  the  project  documents  it  will  take  up  to  three  to  five  months  until  signing,  and  in  some  cases  the  process  can  be  shorter.      

 

 

Initial  Screen  

 2-­‐10  Days  

 

In-­‐depth  Review  

 11-­‐17  Days  

 

Initial  Due  Diligence  

 18-­‐35  Days  

 

Intensive  Due  

Diligence  36-­‐40  Days  

 

Investment  Recommendation  

and  Closing    

44-­‐90  Days  

   Proactively  source  investment  opportunities      Log  and  screen  each  investment  opportunity      Review  business  summary/  plans    

  Thoroughly  review  company's  business  model      Review  outside  databases  on  market  and  industry  forecasts      Analyze  general  risk/reward  characteristics  of  investment  opportunities  

  Focus  on  quality  of  management  Complete        Test  business  model      Discuss  terms      Prepare  Short  Form  Investment  Summary      Issue  term  sheet    Due  Diligence  &  Admin.  Fees  Paid.    

  Refine/review  financial  projections          Complete  reviews  of  third-­‐party  accounting/  market/  technology  as  appropriate      Negotiate  term/structure      Conduct  legal  review      Conduct  customer/  management  reference  checks  

  Gain  approval  of  recommendation  by  investment  committee    Prepare  memorandum  Investment  /commitment    Prepare  final  document      Intake  collateral    /  Set  up  SPE  /SPV    Leverage  Mechanics,  SPE  set  up  to  intake  assets  and  collateral.        Lender  provides  first  trench  of  funding  into  the  project’s  master  fund.  

 

 

After   completion   of   an   investment,   Lloyd   Bancaire   professionals   actively   monitor   each   portfolio   company,  strategically   focusing   on   the   development   of   the   company   toward   investment   exit   goals.   This   includes   intense  focus  on  improving  business  performance,  active  involvement  with  management  and  continuous  evaluation  of  exit  options.  

 

 

 

Referrals:  Lloyd  Bancaire  welcomes   investment  proposals  and  referrals   from  banks,   investment  banks,   law  firms,  advisors   and   intermediaries.   We   will   pay   reasonable   referral   fees   provided   such   fees   are   pre-­‐negotiated   and  agreed  to  in  writing.  

 

CONTACT    

If  you  know  of  an  opportunity  that  meets  these  criteria,  we  would  appreciate  the  opportunity  to  speak  with  you.  Please  contact  the  Investment  Advisor  for  your  region.                                                                                                        

 cs@lloydbancaire.co.uk  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AMERICAS  //  ASIA  //  EUROPE  

This document is provided by Lloyd Bancaire are for general knowledge only, and does not constitute the provision of legal advice, accounting services, investment advice, written tax advice under Circular 230 or professional advice of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult with a professional advisor who has been provided with all pertinent facts relevant to your particular situation. The information is provided ‘as is’ with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties or performance, merchantability and fitness for a particular purpose.