As a two-dimensional representation is insufficient to convey the depth and reach of a network that must be mapped in multiple dimensions, we break down our investor network by:
- Investment tickets
- Transaction strategy
- Industry sector
Investment tickets: The amount of capital an investment fund puts to work is a direct function of their Assets Under Management, and their need for diversification. For corporates, the investment ticket size is a direct function of the size of its balance sheet.
Transaction strategy: The vast majority of institutional investment vehicles specify clearly the sort of transaction in which the vehicle can participate. Funds that are structured to invest as majority investors usually do not take minority participations and almost never participate in debt transactions. Lending funds may or may not participate in project finance, and Special Situations funds rarely participate in any of the other transaction categories
Sectors: Fund management teams and corporate investors focus on the sectors they know, or that are within their zone of comfort. They are either unlikely to invest outside of these criteria or, often, prevented from doing so by their investment statutes.