- Management. We look to partner with management teams that have a repeatable track record in generating shareholder value and have a full set of skills that are congruent with the business plan.
- Strategy. We look to invest in business strategies that make sense given current and prospective market conditions and that will, under reasonable assumptions, result in an attractive return on exit. A key question we ask ourselves is whether we, as management, would want to implement the strategy and whether we would be able to execute upon it. Additionally, we perform a technical evaluation that covers off the following areas to evaluate the proposed plays:
- Geological & Land Detail
- Engineering detail
- Technical experience
- Financial. We look to partner with management teams that have invested meaningful amounts of their own money in the company. Additionally, the amount of financing being contemplated must be appropriate given the business plan and the industry environment. Performance-based incentives for management must be reasonably sized and back-end loaded to ensure proper alignment of interests.
- Governance. An investment opportunity must have a committed and independent board of directors with the skill and experience needed to provide effective guidance.
|