Governance
Finances
Project-level:
- Each project has an accountant/financial director
- Financial control policies, guidelines of expenses, and capital expenses
- Monthly summaries of cash transactions
- Quarterly full financial statements
- Outside independent audit of annual financial statements
- Transparent reporting to LPs
Fund-level:
- Transparency in fee structure: consulting/oversight/board fees, management fees (if any), carried interest
- Transparency in fund-level expenses: legal fees, investment team travel, deal origination fees, etc.
- Formal policies for decision-making on investments: Investment Committee with charter, bylaws, etc.
- Quarterly financial statements
- Outside independent audit of annual financial statements
- Transparent reporting to LPs
Operations
Project-level:
- Access and inventory control policies, procedures and checks
- Operational updates on the private LP site: tracking of construction milestones, etc.
- Journalistic reporting on projects being completed: public site & social media accounts
- Investor forum for direct dialogue between investors and business entrepreneurs
- Provision for investors to visit project sites
Fund-level:
- Policies on the level of investment oversight: “hands-on” approach to investment management
- Transparent policies on travel expenses: balance between incentivizing the investment team to stay close to the ground and not abusing the travel budget
- Quarterly meetings with investors