Direct 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:

Initial Screen 250+ Companies Annually		In-depth Review 75-100 Companies		Initial Due Diligence 30-40 Companies		Intensive Due Diligence 10-15 Companies		Investment Recommendation 4-7 Companies Annually
Proactively source investment opportunities Log and screen each investment opportunity Review business 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 on-site due diligence Test business model Discuss terms/pricing Prepare Short Form Investment Summary		Refine/review finandial projections Complete reviews of third-party accounting/ market/ technology as appropriate Negotiate term/pricing/ structure Conduct legal review Conduct customer/ management reference checks		Prepare Long Form Investment Memorandum Prepare final document Gain approval of recommendation by investment committee

After completion of an investment, MFPE 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.