The Goodyields Capital team uses streamlined, clear and proven processes. The optimisation of the transaction costs is an intrinsic element of our investment process. In this phase, the value contribution of the assets of the portfolio is determined to a large extent. Unlike in traditional private equity transactions, the payment of a high purchase price is rarely compensated for at a later date in the case of infrastructure assets.

The investment process generally takes place
on three levels:

• Operational investment process
• Negotiation process
• Portfolio/risk management process

The main process stages at these three levels are:

Funnel entry

Assets offered to us by our industrial partners will be included in the opportunity funnel.

First screening

During the first screening, the basic technical and commercial frameworks are tested.

High-level financial analysis

An initial high-level financial analysis allows an assessment of the commercial attractiveness of the asset.

Pipeline entry

A Management Board resolution determines whether the investment opportunity will be pursued. Competing investment opportunities are also weighed against each other at this stage - the risk-adjusted return analysis is as indispensable as our CAPEX and OPEX benchmarking tools

Detailed analysis / preliminary negotiations:

At a lower analysis level and after preliminary negotiations with the seller, a Non-Binding Offer (NBO) is submitted, which very specifically defines the respective opportunity with clear documentation of the assumptions.

Initial Due Diligence (DD) / negotiation of key terms:

After acceptance of the NBO by the seller, an initial DD takes place, which is still essentially carried out in-house and therefore results in no significant external transaction costs. At this point we usually insist on a bilateral negotiation process. Upon completion of this stage of the process, all material terms of the transaction with the seller are already agreed in a termsheet so that there is a very high probability of closing once the termsheet has been concluded.

Due diligence / contract negotiation (signing/closing)

In Due Diligence, external consultants, in particular technical consultants, resource consultants, lawyers, and accountants are involved to carry out technical, legal and commercial DD under the guidance of our investment professionals. This phase is concluded when the purchase contract is signed.