Investment  Criteria

Prospect invests in companies that have established a demand for their product or service, but require equity to fund their growth. Most industrial sectors are of interest and the preferred investment size is £10 million - £30 million, although smaller and larger investments may be considered.

Positive Investment Characteristics:

• Early stage – but generally not seed or start-up
• Proprietary service or technology
• Product or service satisfies an unmet need
• High growth potential
• Possibility of substantial market share / market leadership
• Management with relevant experience and hungry
• Low to medium capex
• Route / time to free cash flow identifiable
• Returns not driven by leverage

Negative Investment Characteristics:

• Inexperienced, inadequately motivated management
• Commodities, fashion, retail, biotech
• Mature sector dominated by major suppliers
• "Lumpy" revenues
• High capex requirements
• Profitability without positive cash flow
• Dependence on a small number of customers
• Low barriers to entry