A placement assignment will see Principle acting as the agent for an investment manager in the Australasian institutional investor marketplace. In that capacity Principle will lead and coordinate the capital raising process for an offering, introduce prospective investors and interact directly with them on behalf of the client.
As part of the process, Principle will also advise on strategy and offering parameters, to ensure consistency with the needs of Australasian investors, and assist in the preparation of marketing materials.
A placement assignment will draw on the extensive network and capabilities of Principle, with a view to successfully establishing the client in the market and providing it with close working relationships with quality investors. Principle limits the number of placement clients that it takes to market, to ensure that those we work with receive close attention and unwavering support, and that we are not concurrently representing competing offerings.
We strongly encourage our clients to engage with the marketplace at least 9 to 12 months prior to the commencement of the formal capital raising period.
A diagnostic review enables an investment manager to determine whether its proposed offering is likely to attract institutional support. In conducting a diagnostic review, Principle subjects an offering to a high order of scrutiny and works through a process that replicates investor due diligence.
Both new and established investment managers will find that the review process provides insight into the key issues they will face when capital raising, which can ultimately lead to considerable time and cost savings. A diagnostic review may be undertaken on a stand-alone basis, or as a prelude to a product development, market entry or placement assignment.
A diagnostic review typically takes 4 to 8 weeks.
A product development assignment will see Principle working with an investment manager to help it develop an offering capable of efficiently and successfully accessing the institutional investor market.
Product development advice typically relates to: product specification and mandate design; governance and investment process implementation; team issues; fund structuring; fee arrangements; and information memorandum, presentation and due diligence pack preparation.
The analysis and input provided by Principle helps ensure that an offering can pass more readily through investor decision-making frameworks, get greater investor attention and be more likely to attract investor support.
A product development assignment is typically conducted over a 6 to 12 month period.
A market entry assignment encompasses the formation of a marketing plan that will help ensure successful interaction with institutional investors and their advisors.
Principle will assist a manager to: identify the appropriate prospective investors for an offering; understand the competitive landscape; map the decision-making channels of each investor; discern the key decision makers, their requirements, biases and sensibilities; outline the process of gaining access to relevant market participants; and determine tactical responses to challenges presented during the capital raising process.
The market entry service is appropriate for investment managers that have worked through the Principle product development process and investment managers that are otherwise ready for market.
The duration of a market entry assignment will depend on the nature of the offering.
In addition to our core services Principle undertakes customised projects associated with investing in alternatives asset classes.
Previous projects have related to:
– the sale of existing portfolios and secondary positions in funds
– assisting domestic and international investment managers identify appropriate business partnerships
– identifying prospective investment team members
– providing institutional investors with information to help in developing their alternatives portfolios, and
– the sale of subordinated debt and preference shares for large infrastructure assets.