We would enter into a confidentiality agreement with the seller and arrange to visit the seller’s offices to undertake initial due diligence in which we would review the available investor documentation. This might include documents describing the shareholding and capital structure, investor presentations, board minutes etc. We are always keen to learn the seller’s perspective of the companies – the opportunities and the challenges.
Following initial due diligence we prepare a written preliminary offer which is typically subject to contract and detailed due diligence.
There must be an opportunity for us to acquire a meaningful shareholding or interest in the business from a historical investor or existing shareholder.
Only having completed a secondary purchase are we then able to invest fresh capital into the business.
We normally look to build a 15% or greater shareholding through the combination of acquiring existing shares (the secondary acquisition) and investing fresh capital into the business (primary investment).
Typically we hold a minority interest in a business but there is nothing stopping us from holding a greater than 50% interest.
Sinclair Fox is a global leader in private equity, with over $1 billion in assets under management through our opportunistic and private equity segments.
Available Capital to Invest
Great Minds Invest Different.