Thesis, asset and rights
Separate what is being bought, which rights are acquired, who can transfer them and which charges, contracts or conditions restrict their exercise.
Standalone Knowledge Centre topic
High-Value Investments
Thesis, evidence, valuation, financial capacity, governance and conditions for committing capital.
What an investment must withstand before capital is committed
An attractive narrative does not replace verification of the asset, acquired rights, cash flows and a realistic exit.
Valuation and financial model
Valuation must state its date, method, assumptions and sensitivity. The model should test CAPEX, OPEX, cash, scenarios and downside.
Counterparty and governance
Verify identity, authority, UBO, investment structure, cap table, custody, reporting, conflicts and execution capacity.
Liquidity and exit
Test cash-flow quality, transfer restrictions, the secondary market, timing, costs and realistic exit conditions.
Minimum evidence for a defensible review
Documents and checks
- Investment structure and cap table.
- Evidence of title, rights, charges and contracts.
- Valuation, financial model and sensitivities.
- Identity, authority, UBO, governance and conflicts.
Risks requiring escalation
- Valuation dependent on untested assumptions.
- A structure separating the investment from the promised asset or right.
- Cash flows, liquidity or exit without sufficient evidence.
- Custody or governance unable to protect the investor's position.