foreGrowth seeks out investments with an optimal balance of liquidity, risk and return potential to generate the highest-yielding returns while maintaining a core focus on principal preservation. We do this by partnering with tier one companies and leading global asset managers who are experienced in managing products that are not typically accessible to the average investor. foreGrowth has a number of different products available including:

• Direct investments in private companies and unique opportunities in public corporations
• Funds managed by leading institutional asset managers
• Hard-to-access new issues that normally only go to institutions

We analyze our partners’ overall investment philosophy, due diligence process, senior management team and historical track record before we take a look at individual investment opportunities. Once we have ascertained that our strategic co-investment partners meet our high standards, we ensure that each investment has undergone a rigorous, multi-level due diligence process. Our evaluations include detailed analysis of the business model and projections, corporate management and financials, market potential and business development plans, along with a detailed competitor and market analysis.

foreGrowth co-invests alongside these strategic partners in every investment opportunity on our platform.

The companies and funds we invest in also benefit from access to the Gravitas Group of Companies expertise in business incubation and our expansive investor and distribution networks.

INVESTMENT PROCESS

AREA OF FOCUS

foreGrowth focuses on alternative investments, particularly in specialty finance, which can be broadly defined as any financing activity that takes place outside the traditional banking system. This type of financing, also known as non-bank lending, has grown in prevalence and importance since the recession as financial institutions have had to adapt to stricter regulations and tighten their lending standards. This has created an under-served market of small to mid-sized businesses that need financing but cannot obtain it from traditional lending channels.

Specialty finance firms have a much more dynamic approach to lending and are less bureaucratic, allowing decisions to be made much more quickly as senior management becomes involved in the process much earlier in the process. As a result, lending is based on not only quantitative criteria, but equally dependent on qualitative factors. foreGrowth considers the following non-traditional criteria in its investments:

We develop close relationships with our investee companies, which allows for greater flexibility when structuring deals to companies that would not traditionally qualify, as well as the ability to set more favourable terms.
Next to private equity, private debt is expected to deliver the highest returns over the next three years and is perceived as having equity-like returns and superior protection, and, with a low correlation to other asset classes and as an asset-backed investment, private debt is particularly attractive to risk-averse investors seeking principal protection and steady cash flow.