The first point of contact in TRI Cap for companies seeking investment is Kathy Greenwood, Investment Manager. Kathy is happy to have initial discussions about TRI Cap, our investment approach and about your company’s business plan and investment needs.
Our Investment Approach
TRI Capital is based in the Scottish Borders and is particularly interested in businesses that are located in the Borders, Lothians and North of England, or are considering relocation to the area. We are however open to approaches from companies based elsewhere which display potential for high growth and attractive financial returns.
Each investment opportunity is considered on an individual basis and on its fit with TRI Cap’s approach. We take pride in being open and friendly, as well as thorough. We are also prepared to play a long game, working with companies both prior to and after investments to ensure that each party gets the most out of the relationship and that there are no surprises for anyone.
Our Investment Process
If, following initial discussion and assessment against our investment criteria, you want to submit your business plan for consideration, TRI Cap follows a process that is designed to be straightforward and open.
All of our members are given the opportunity to consider each business plan through the circulation of the Executive Summary. It must be remembered that it is our members, not TRI Cap itself, which makes the investment. Those members who express initial interest receive the full plan and, from this group, those who wish to take the proposal further will form an evaluation committee. One member is nominated TRI Cap’s Lead Contact, who then arranges a visit for one or two members to the company seeking investment.
The members then present a report to the next monthly meeting which recommends (a) positive consideration of investment, (b) further evaluation or (c) that the proposal is turned down.
- in this case, if the board agrees, TRI Cap and the company will go into a period of negotiation and evaluation to ensure that both parties fully understand the investment proposal and its implication. This will involve further meetings and at least one presentation to the TRI Cap membership. Once the investment is agreed, commercial and legal Due Diligence is conducted. Subject to successful outcome of this process, the investment will then proceed with those members who wish to be involved.
- further evaluation will take place, involving at least one further meeting. A further report will then be presented to the board with a recommendation for investment or that the proposal is turned down. If the recommendation is a positive one, the proposal will go through process (a).
- where the proposal is turned down, TRI Cap ensures there is a constructive debrief to ensure that the company gains benefit from the process and a clear understanding of any issues. In the case of TRI Cap’s turning down the proposal, it may however be pursued by an individual member.
It should be noted that if the investment goes ahead, costs are charged to the company invested in for due diligence carried out by TRI Cap on behalf of members. There are also fees charged to the company for service provided by TRI Cap members. It is normal that at least one member of the investment team joins the board of the company.
- Individual Members make the investments in the Companies.
- TRI Cap does not invest in Companies.
- TRI Cap manages the due diligence of potential investments as part of its administration service for Members (and if applicable for the Scottish Enterprise Co-Investment Fund). Costs are charged to the Company if the investment goes ahead. If the deal does not go ahead TRI Cap picks up the costs unless prearranged for the Company to pay.
- TRI Cap normally charges the Company a research fee and monitoring fee as part of the administration service provided by it for its Members in connection with their investments.
- TRI Cap charges the investing members a % of their investment as an administration charge.
- Where applicable TRI Cap “manages” the draw down of Co-Investment Fund monies by Scottish Enterprise as part of its “matched funding” facility.
- Where possible a TRI Cap Member will be appointed to the Company’s Board to represent the individual Members’ investments.
- Whenever appropriate EIS approval will be available for the individual’s investments.