The Investment Manager will conduct a first assessment of the eligibility of the investment (Direct Investment, Financial Institution or Intermediary as the case maybe)* and the overall portfolio fit. If the outcome of the first screening is positive the Investment Manager will start the due diligence process.
* Risk Sharing will usually require a due diligence at Direct Investment level. In addition, the risk sharing parties will enter into an agreement defining among others responsibilities of each party.
For the due diligence process further investment information, such as, comprehensive investment description and technical details are required **. Upon being provided with the required information the Investment Manager will assess the investment’s financial, technical and legal specifications and analyze whether the Fund’s environmental, social and developmental objectives could be met. Typically, the Compliance Advisor will join the Investment Manager for the on-site due diligence in order to review the potential investment for compliance with social and environmental standards. If necessary, the Investment Manager will collaborate with the management team of the investment to discuss and advise on different feasible financing structures for the investment.
In parallel the Investment Manager will initiate a client adoption process aiming to ensure that AATIF complies with legal obligations to prevent itself and its clients from being involved in money laundering, terrorist financing or other illegal activities.
**List of Requirements: all available and relevant information, including investment teasers, comprehensive investment descriptions, financial statements and financial models, technical, social and environmental details.
Subject to a successful outcome of the due diligence, the Investment Manager will prepare a comprehensive Investment Proposal which shall present the economic, social and environmental case for entering into the investment while also referencing the outcomes of the Compliance Advisor’s review. Such proposal is to be presented to the Investment Committee for approval.
If approved, the Investment Manager will prepare, negotiate and execute the legal documentation which will typically include financial, social and environmental covenants and reporting requirements.
Further to preparing the financial closing, the Investment Manager will discuss any potential need for technical assistance with the Technical Assistance Facility Manager, who in turn may take the case to the Technical Assistance Facility Committee for approval of measures ranging from training to support in establishing proper social and environmental safeguards.
The Investment Manager will monitor the Investment’s compliance with terms and conditions agreed upon prior to the investment. This includes regular (quarterly and annual) review of financial, social and environmental performance.