Starling receives and reviews an average of 140 investment proposals a year.
As part of its investment process, Starling performs extensive due diligence on 30 to 40 of these and typically invests in just three to five opportunities a year.
All investment proposals shortlisted from the previous stage are analysed in detail by the Investment team. At this stage of the investment process, the fund is required to provide further fund documentation including the Limited Partnership Agreement, the Investor Questionnaire, CVs of Management etc.
Due diligence generally takes between three to six weeks, but the investment review process can be expedited if the situation calls for it. Starling may employ third-party specialist firms to help evaluate investment partners and proposals submitted to the company for consideration. Legal due diligence is done at this stage to ensure that the fund terms and conditions are acceptable to Starling.
After completion of the extensive due diligence
all investment proposals are reviewed by Starling’s investment committee and a final decision is taken.
Final decision is communicated to the fund manager and the legal documents are executed and submitted to the fund lawyers.
Starling has monthly conference calls with fund managers to discuss fund performance and cashflow projections. Starling reviews the quarterly reports of its private equity funds
very carefully and usually follows these by conference calls with fund managers to resolve any queries that Starling may have.
Further, Starling regularly attends annual meetings and other ad-hoc meetings with fund managers.