Investment Process
Prospective Investments
Our first step is assessing the investment universe to identify prospective investments and potential situations within our fields and markets of interest. The first segregation of the studied population establishes the foundation of our base of prospects that may lead to originations. However, some of our most exciting opportunities have also developed thanks to companies coming directly to us.
Parametric Scoring Model
The array of potential investments that we have identified then go through a parametric scoring model to highlight the most exciting and promising opportunities.
Human Approach
Initial swift due diligence confirms the quantified results with a human approach to ensure the shortlisted investments best fits our investment policies and criteria.
First Contact with the Company
Following the initial quantitative due diligence process, we make our first contact with the company’s management. We believe that the most important due diligence is the one we convey to people. Once a mutual interest is confirmed, we proceed to lay out the operational implications of entering into such a transaction. To develop the most thorough and objective understanding of our partners’ businesses, we dedicate a sizeable amount of resources and time to our analysis.
Macro & Micro Economic Level
Further internal processes benefit from a competitive structure based on a proprietary economic algorithm. We pride ourselves in being able to garner a deep understanding of your business model, on both a macro and micro economic level, together with the management’s exposure and situation.
Tailored Solutions
Alpha Blue Ocean approaches each investment with equal parts of optimism and pragmatism while pitching the balance of arguments to the investment committee to deliver the first official draft proposal. As every company is different, Alpha Blue Ocean customizes each transaction on an exclusive basis. From private to public debt and equity investments, to structured and straight equity participation, we offer a wide spectrum of tailored solutions.
Perfecting the Structure
After an official term sheet is issued, we start to perfect the structure through a dialogue with management. This allows for the most interest aligning transaction that will benefit the company’s stakeholders and investors. We design our operations to leverage win-win situations and set our model within a blue ocean of uncontested market space.
Closing & Signing Documentation
Once all parties are happy to proceed with the transaction, we finish with the closing and signing of the final documentation and are ready to start working together. We know time is money, especially for entrepreneurs, so we offer a 3-week timeline, from the first contact to the closing deal and release of funds.
Kick-off Period
When signing the deal, the post-closing involvement period kicks-off. This includes unlimited financial and business advice, growth acceleration proposals, intra and extra portfolio synergies, risk management and monitoring of social impact.
The Exit Process
Finally, the ‘exit’ process will herald a successful and mutually beneficial venture from a smooth disposal to a strategic and synergic buyer, a company buyback or a sale on public markets using our proprietary Artificial Neural Network model for systematic and dynamic trading signals, Darwin IQ™