FORMATION OF INVESTMENT GROUP SEMINAR OUTLINE
1. Approach The seminar will be a half day learning session in a classroom style.
2. Objectives The overall objectives of the seminar will be to review all the key aspects of establishing and running an
investment groups including, inter alia:
a) Strategic Objectives of the Promoters;
b) Translating Objectives into a legally recognized and registered entity;
c) Creating effective decision making and execution channels to realize group objectives;
d) Enhancing a performance oriented culture of accountability;
e) Anticipating future additions as well as attrition of membership.
3. Pre-Reading Participants will receive a one page Due Diligence Questionnaire to set the tone and participant mind frame for
the session to be answered before attending the session.
4. Session The facilitator will run through the following topics in depth with the participants to engage their level of
Content understanding and preparedness for their investment undertaking:
1. Why are we going to be incorporated?
2. Incorporation options
3. What is our short, medium and long term strategy?
4. Capital contributions and tax efficient capital structures
5. Leveraging for growth: the debt/equity conundrum
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6. Execution of strategy: self managed or outsourced?
7. Board composition, structure and mandate of committees
8. Definition of asset portfolio and risk appetites
9. Equality: socialism or capitalism in the group’s approach to shareholding
10. Shareholder Agreement: Present and Future shareholder dynamics including new members and
departure of old members, dividend distribution policies and valuation methodologies
5. Summary At the conclusion of the program, participants need to be able to:
1. Articulate the Strategic Objectives of the Promoters & Translate them into a legal entity
a) Develop defined objectives to include in the formation documents
b) Determine the incorporation entity that the investment group will use to achieve its objectives
2. Create effective decision making and execution channels to realize group objectives
a) Define what a performance-oriented culture and accountability mechanism looks like
b) Believe in the benefits / reasons for working toward having such a culture.
c) Recognize the organizational structures are required for sustaining such a culture and be prepared to establish them
including designing terms of reference for the organizational structures
3. Establish an optimal capital structure that can achieve group objectives
a) Identify suitable capital structure based on group contributions.
b) Identify future capital requirements that will deliver the group strategy including debt options.
c) Establish shareholding structure that will enable future additional shareholding and possible attrition of existing
4. Understand the overall group risk appetite and the asset portfolio
a) Apply insights into the risk appetite dynamics of group members.
b) Assess, build, and maintain a defined asset portfolio
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