IMPACT INVESTING 創效投資
Our team has experience in various impact investing themes, particularly in Education, Health Care, and Financial Innovation.
INVESTMENT OBJECTIVES 投資目標
Promote sustainability concerning energy, food, water and environmental protection
Spearhead health management processes or medical technology
Facilitate knowledge acquisition and education
Enhance lifestyles and let new ones flourish
Improve interaction between people and society
Create a paradigm shift in a business sector or an industry
INVESTMENT OPERATION 投資操作
Our Investment Committee is responsible for making investment decisions and managing portfolios. It meets weekly to review investment opportunities, make investment decisions, and design engagement strategies.
RISK MANAGEMENT COMMITTEE
Our Risk Management Committee reviews both investment risks and operational risks facing the company. It meets bi-weekly to review risk management issues and design corresponding mitigation strategies.
Our Operating Committee is tasked to ensure our regulatory compliance and manage our business resources. It meets bi-weekly to discuss compliance and operational matters, and to review various business processes and projects. The management team reviews our weekly compliance report to ensure all outstanding compliance tasks are identified and are dealt with on a timely basis.
INVESTMENT PROCESS 投資流程
Direct investing in private companies
Deal Sourcing – We develop and maintain specific connections for sourcing impact investing deals. We value quality deal flows from governmental and consulate-level offices, incubators and accelerators, smart space operators, venture investment intermediaries, co-investing partners and the personal network from the AFIM founding group, its associates, management team and advisors.
Deal Screening – We adopt a top down approach for deal screening. We assess the geopolitical situation, economic growth, plus the industrial life cycle and associated policies to make a medium to long-term estimate of opportunities and risks of the relevant market. We study the business model to understand the value proposition, business intention, social objective and viability of operation to decide if the deal should proceed.
Due Diligence – We emphasize “people” and “business”. The overall focus is on the character, knowledge, experience and ability of the entrepreneur and the management team, plus their accountability to the employees, customers, investors and other stakeholders. The business model, customer and market, scale and scope, technology and other attributes are also studied in depth to assess the potential impact and economic benefit brought by the company.
Deal Valuation and Structuring – We use multiple methodologies for valuation and various qualitative factors for complementary assessment due to the uniqueness of each deal. We design appropriate indicators and metrics to map the performance of the business and ensure the values delivered can be measured against our expectation. We negotiate with the company and decide on financing structure (securities, convertibles, innovative assets, etc.) and involvement in management (board seat, advisory role, etc.) to ensure the effectiveness of our investment, fairness of treatment of each party and rationale of the management and capital structure of the company.
Monitoring of and Support for Portfolio Companies – We maintain close and regular contact with the entrepreneur and the management team to monitor the growth of the company and assess its impact and financial results against corresponding indicators and metrics. We offer guidance and assistance as necessary, while respecting the autonomy of the entrepreneur and management team to build and run the company.
We also incorporate “design-thinking” to assess synergies that we can offer, such as technical know-how, strategic connections and managerial advice, which will help the company to explore new market opportunities and enhance its business impact.
Harvesting the Investment – We value our long-term relationship with entrepreneurs and management teams, and intend to engineer exit strategies carefully, with mutual benefits in mind. In addition to traditional exit strategies such as strategic selling and listing, we can also adopt alternative approaches such as listing through tokenization.
Managing funds of funds
We are currently establishing a flagship impact investment fund through investing into a portfolio of high-quality investment funds offered in North America, Europe and Asia.
Manager Sourcing and Selection –We focus on impact investment funds and scrutinize qualitative factors such as their investment philosophy, vision and values, ethics and relationships with stakeholders at the initial screening stage. We then identify constituent funds for our portfolio by studying their track records on investment performance, risk exposure, consistency, and indicators revealing unique skills, expertise and experience of the managers.
Diversification – We aim to carefully construct the portfolio to achieve diversification in investment manager and style, funding stage, sector coverage, geographic exposure and vintage year to reduce risk in each of these dimensions.
Relationships with Investment Managers – We are committed to establishing long-term relationships with investment managers to facilitate future partnerships in exclusive re-investment opportunities, expanding fund sourcing and business networking, while formulating synergetic strategies with each other.
Portfolio Management – In addition to monitoring the performance and risk of the portfolio, we take an active approach to add value by providing advice on funding and co-investment sources. We also provide relationship support to both the managers and the portfolio companies with the goal of enhancing the financial return and social impact for our stakeholders.