Investment approach Decision blueprint / Sharemont Investments

Every investment begins with a decision framework.

Our approach separates mandate, evidence, risk, transaction structure and oversight so that each capital decision can be examined, documented and reviewed.

Mandate defined Eligibility before detailed review
Evidence challenged Documentation before confidence
Risk documented Downside before capital deployment
Sharemont capital desk Investment Decision Blueprint
IDB
Central decision principle Allocate only where evidence, structure and oversight align.
Layer 01 Mandate and eligibility
Layer 02 Evidence and due diligence
Layer 03 Risk and downside analysis
Layer 04 Structure, decision and monitoring
A / 01 Mandate before opportunity
A / 02 Evidence before assumptions
A / 03 Downside before upside
A / 04 Oversight after deployment

Mandate formation

The opportunity must fit the capital mandate before it can progress.

We begin by defining the investment boundary. This includes the type of opportunity, time horizon, capital requirement, risk tolerance and information needed for further review.

M / 01

Strategic fit

The opportunity should correspond with the relevant investment scope rather than rely only on a persuasive growth narrative.

M / 02

Capital purpose

The requested capital should have a specific use connected to an identifiable operating or strategic objective.

M / 03

Time horizon

The expected development period, capital duration and relevant review points should be understandable.

M / 04

Risk boundary

Material dependencies, legal exposure, operating uncertainty and downside scenarios are considered at the entry stage.

Preliminary screening

The first review determines whether deeper analysis is justified.

A project may stop at this stage when the mandate fit is weak, information is insufficient or material issues cannot be resolved.

Gate 01

Eligibility

Confirm that the opportunity falls within the relevant investment route and basic participation requirements.

Entry review
Gate 02

Information quality

Assess whether the initial financial, operating and ownership information is sufficiently complete for further work.

Evidence review
Gate 03

Material conflicts

Identify obvious legal, structural, ownership or reputational issues that may prevent progression.

Conflict review
Gate 04

Review decision

Determine whether to decline, request additional information or advance the opportunity to detailed diligence.

Progression control

Due diligence

Reviewable evidence replaces unsupported confidence.

The depth of diligence depends on the opportunity, transaction structure, jurisdiction and risks identified during screening.

Diligence / 01

Financial evidence

Review historical financial information, revenue quality, cash generation, liabilities, forecasts and capital requirements.

Diligence / 02

Operating model

Examine how the business creates value, delivers products or services, uses resources and depends on key counterparties.

Diligence / 03

Ownership and governance

Understand beneficial ownership, authority, decision rights, management responsibilities and existing obligations.

Diligence / 04

Legal and structural exposure

Identify material agreements, disputes, regulatory dependencies, security interests and transaction restrictions.

Business and financial analysis

A business case is tested from more than one direction.

We consider commercial logic, operating capability, financial resilience and capital efficiency together. Strength in one area does not automatically compensate for weakness in another.

Analysis / 01

Commercial logic

Customer demand, pricing, competition, distribution and the durability of the value proposition.

Analysis / 02

Operating capability

Management capacity, delivery systems, suppliers, technology and organisational readiness.

Analysis / 03

Financial resilience

Margins, liquidity, liabilities, working capital, cash requirements and sensitivity to change.

Analysis / 04

Capital efficiency

How the proposed funding connects to milestones, operating improvement or identifiable growth capacity.

Downside analysis

Risk is analysed before return assumptions are accepted.

The objective is not to eliminate uncertainty. It is to identify material exposures, understand how losses may occur and determine whether the proposed structure addresses those risks.

R / 01

Execution risk

Assess whether management, systems, suppliers and operating capacity can support the proposed plan.

R / 02

Financial risk

Examine liquidity pressure, debt exposure, cost sensitivity, funding gaps and dependence on future capital.

R / 03

Market risk

Consider customer concentration, pricing pressure, competitive change and external demand conditions.

R / 04

Governance risk

Review ownership conflicts, authority, reporting weakness, related-party exposure and information reliability.

R / 05

Structural risk

Determine whether the proposed rights, conditions, milestones and protections are appropriate to the exposure.

Structure and decision

The final decision includes terms, conditions and responsibilities.

Where applicable, an opportunity proceeds to internal decision review only after material findings and unresolved risks have been documented.

01

Investment thesis

Summarise the commercial logic, evidence base, capital purpose and reasons the opportunity may fit the mandate.

02

Transaction structure

Define the proposed capital amount, use of funds, rights, milestones, conditions and information requirements.

03

Decision review

Consider the investment thesis, diligence findings, downside scenarios and unresolved matters.

04

Documented outcome

Record approval, rejection or conditional progression together with the material basis for the decision.

Post-investment monitoring

The investment process continues after capital is deployed.

Monitoring requirements depend on the transaction and may include periodic reporting, milestone review, material-event notice and further approval conditions.
Monitor / 01

Financial reporting

Review periodic financial information, liquidity, capital use and comparison with relevant plans.

Monitor / 02

Operating performance

Track material changes in customers, suppliers, delivery capacity, costs and operating conditions.

Monitor / 03

Milestone review

Assess progress against agreed objectives, conditions or capital deployment stages.

Monitor / 04

Risk escalation

Require timely communication of material liabilities, deviations, disputes or emerging risks.