Investment Syndicates are typically formed to invest in a specific project, but in some cases may be targeted to spread investments across a range of projects, allowing members to spread their risk by maintaining a balanced portfolio. In all cases, it is the syndicate members that decide whether or not to proceed with an investment: for individual projects, each member simply decides whether or not they want to participate; for spread investments, decisions are made by a majority vote.
Any member may submit a proposal; a proposal may also be submitted by a third party but in such instances a member must sponsor it. Once validated, details are made available to members who are registered as investors - they will then decide whether or not they wish to participate.
The focus is on obtaining the best possible terms for both return and security. An Investment Syndicate, which may comprise many investor members, typically represents significant funds which allows it to negotiate much better terms for each aspect of its implementation than would be available to an individual.
A member or third party submits an investment proposal to ICP. The company will advise whether or not the project appears viable and what further information should be provided. Viability will be determined based on normal investment criteria and the likelihood of the proposition being of interest to members.
We list the opportunity on the web site and invite expressions of interest from members who have registered as investors. Expressions of interest will not be published but will be visible to the proposer. Note that only 'Sophisticated Investors' or ' High Net Worth Individuals' as defined by the Financial Services & Markets Act 2000, or non-UK residents who act in conformity with any relevant laws in their country of residence, may register as investors. Full details of the proposal are forwarded on request.
Where sufficient interest has been identified the project will enter the Incubation stage during which the participants and potential investments will be confirmed. Due diligence will be carried out and a detailed investment proposal drawn up. Apart from financial data, it should include a thorough risk assessment. Whilst ICP will facilitate the process, it is the individual participants who will make decisions and take responsibility for actions.
A secure web site, accessible to participants only, will be provided. This will be further sub-divided into areas for different types of Partner so that, for example, investors can discuss options privately and service providers can provide updated information.
A successful Incubation will result in the project being adopted and appropriate agreements being put in place.
The Development stage covers the period between a binding commitment to invest and delivery of the project. This would typically equate to the actual construction phase if it is a new build project or, if it is a completed or near-completed construction, it may be quite short.
During this stage, the investors will realise their returns, whether in the form of a simple capital return or ongoing income. In simple terms, a project which is at this stage should be producing returns for the participants.
The project is reviewed so that any lessons learned are captured for future benefit, outstanding matters are concluded, agreements terminated and the project is closed.