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Private Equity: Deal Sorter

Minimum Qualifying Criteria for a Company or Group to Qualify for Private Equity Funding

Company Vintage: Three YearsPromoters Background: Experienced for 5 Years or so

Company or Group Turnover: INR 70 80 CroresNet Profit: INR 7 8 CroresOperating Profit or EBITDA: 8%Possibility of IPO: 3-4 YearsGrowth Pattern: 15-20% Sales Growth Y-o-YInternal Rate of Returns (IRR) for Investors: 25%Requirements: Rs. 15 Cr. To Rs. 1000 Cr.

Operations:Strong Supply Chain to sustain quality raw materials at low costs

Good maintenance and administrative staffLatest Technology/ Upgrade for the sameNo too much dependance on a single supplierObtain all related approvals and clearances

Marketing:Strong USP (Unique Selling Proposition) or Product/ Service Differentiation requiredBranding: At least a locally renowned brand nameStrong Channel Network with long term channel partnersCatering to diverse marketsNo too much dependance on a single market/ customer

Other:No legal issues with companies or promotersNo default made with any financial institutionsGood Market Reference or Image

Documents Required:Promoters Profile in DetailsCompany Profile in DetailsLatest Two Audit ReportsFinancial Model including Cash ProjectionsBusiness Plan or Project Report

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Minimum Qualifying Criteria for an SPV for Private Equity Funding

Targeted Sectors: Real Estate, Power Plants, Infrastructure etc.Promoting Company Vintage: Three YearsPromoting Company / Brand Name: StrongPromoters Background: Experienced for 5 Years or so

Possibility of Exit for Investors: 3-4 YearsGrowth Pattern: 20% Sales Growth Y-o-YInternal Rate of Returns (IRR) for Investors: 25%Owner's Contribution in Equity: 50%

Esp. for Real Estate:

Requirements: Rs. 25 Cr. To Rs. 1000 Cr.Location:

All the approvals/ clearances/ permissions should be obtainable within maximum of 30 daysAt an upcoming location, abutting Road with a easy approach and good road frontage forvisibility in Tier I city including NCR, Mumbai, Chennai, Bangalore, Pune, Kolkatta andAhmedabadResidential Projects (8 to 25 Acres are preferred)Commercial and Retail Projects can also be considered on selective basisTier II & III cities can also be considered depending on the proposals and background ofpromoters; but are not very easy to close

Developer's Background:Should have successfully delivered 4-5 projects of substantial size in the locationGood/ Renowned Brand in the locationExperienced and able to get approvals and do execution comfortably

No legal issues with companies or promotersNo default made with any financial institutionsGood Market Reference or ImageGood command on supplies

Usage of Funds:Primarily for ConstructionsFunds for Land Purchase can be considered but on selective basis

Documents Required:

Promoters Profile in DetailsCompany Profile in DetailsList of Projects Executed Earlier including location, financial highlights, size and imp. datesFinancial Model including Cash ProjectionsProject ReportCurrent Status of ProjectList of Approvals/ Clearances Pending & To be obtained and time to be taken for same

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