Services

Fund structures

Novium's own funds – how are investment decisions made?

The majority of Novium's own funds have the same structure and organization.

The fund structure consists of:

  • at least one proven fund sector specialist
  • an investment committee (optional)
  • an advisory board (optional)
  • and Novium as the investment manager.

In its role as investment manager, Novium continuously monitors all investments and ensures that all service partners strictly follow the investment procedures, particularly when it comes to investment decisions.

Processes are clearly organized.

For each fund we prepare:

  • a description of the investment decision process
  • quarterly or monthly reports
  • annual reports
  • status reports (progress reports for large investments)

Investor site for viewing the reports

For example: Hypothetical investment decision process

Brief description

(only for real estate, private equity or other specialty funds)

Step 1 To limit costs in the event an investment proposal does not come to fruition, the specialist fund team conducts a quick check. Any further steps are based on this "Quick Check".
Step 2 The investment committee uses the "Quick Check" to decide whether to pursue the proposed investment. If necessary, the advisory committee is consulted to provide input to the decision process.
If a decision is made to go ahead, a budget is established for a more thorough analysis (due diligence).
Step 3 The investment manager commissions the fund's service partners to perform due diligence. This work includes tax related and legal aspects. The service partners prepare reports for submission to the investment committee, which then uses these same reports to make an investment recommendation to the investment manager.
Step 4 The investment manager then decides whether or not to proceed with the investment.

Flowchart of the investment decision process

Flowchart of the investment decision process