Investment Policy
Providing financial security
Investing in hightech,high growth,high return projects & businesses
Making a positive impact to the economy,environment & our stakeholders
Abiding to RW's Code of Ethics
Investment Process
All investments go through 4 stringent approval processes, of which the investment committee has direct and independent oversight power, before being submitted to the board for approval.
Submission
Stringent filtration process
Valuation
In-house methodology
Analyse investment viability
Detailed Documentation
Legality verification
Citing of physical documents/contract
Site visit
Approval
Scrutinize facts & figures
Explore business's future value
Investment Approach
Due Diligence
The Richewood Approach We employ the Richewood's approach for potential companies The methodology includes a scorecard approach to determine the potential of the company, on top of a comprehensive analysis of market and country risk, financial and business analysis, together with structural and management factors.
Hands On Management Approach
Better manage risk when we are in control, be it thru a joint venture, stake in equity via a merger acquisition exercise,Richewood will continue to play an important and controlling role in the growth of a company.
- Joint Venture, Nurture Grow
- Merger Acquisition Synergy
Pre-IPO Private Placement
As South East Asia continues to be the highest growth region in the world over the next decade, it is imminent that some of key businesses and companies in the region will take center stage Our role and Richewood is to identify such companies and nurture it to IPO potential.
Due Diligence
Investment Methodology
Involves evaluating the country's political and market stability, including the government's support for the industry Where as market risk evaluate the level of risk involved in participating in a particular business or businesses that the company is involved in.
The dynamics of the company's environment that determines the operating risk faced by a particular organisation taking into account the strength of the industry and competitive factors affecting the industry.
The financial risk analysis of a company, would involve an analysis of its financial policies, capital structure, profitability, cash flow/debt service capacity and its financial flexibility.
To determine if a proposed facility/structure is suitable for the sustainability, long term profitability and objective of a company.
He competencies and track record of management and other qualitative factors such as parent strength, formal support agreements and ownership.
- Probability of Default
- Calculate Expected Credit Loss ECL (IFRS 9 - Expected Loss Provisioning)
- Probability - Weighted Scenario Testing
- Long Historical Market Data to support analysis
- Economic Credit Cycle
- Accounting Compliance
Investment Segments
- IT / Fintech
- F&B / Manufacturing
- ESG Energy Management
- Pre-IPO
- Others
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