It is predicted that in a near future the number of devices capable of connecting to the internet will increase significantly; the number of devices connected to this international network is forecasted to be up to 50 billion in 2020….
Investment in joint portfolios
Big partnership leads to big results. With this belief, we are ready to form partnerships with reputable and well-known institutes and investors to reach big goals. Such a big partnership, in the form of joint investment portfolios can add significant values for the parties involved. These portfolios can be used by several institutions that have different fields of business, using the general structure of investment portfolios.
۱. Proposal and evaluation
Proposal for a joint portfolio can be suggested by BARKAT to other
۲. The meeting and preliminary evaluation
In this meeting that takes place in the presence of the CEO and deputies of BARKAT, we talk about different aspects of the proposal and discuss the minor details in order to reach a comprehensive plan. After this meeting, our experts evaluate different aspects of the plan to make sure nothing important has been neglected for the final negotiation.
۳. The final negotiation
After the final check, if there are no obstacles in the way of our partnership, a
If the preliminary evaluation of the proposal for establishing a joint fund is considered to be positive by the committee or there is a preliminary approval of the proposal, negotiations will take place. The following should be considered:
- Negotiation will take place at the level of the CEO or the deputies
- Negotiations will cover all the details of the proposal. The most important items are:
- The field of activity of the fund
- The structure of the fund (guarantor partners, limited-responsibility partners, the management of the fund, management cost, the transitional interest rate, the activity period of the fund, etc.)
- Commitments, roles, responsibilities and mutual responsibilities
- The amount of investment and shares of each limited party
- Security and guaranties
- Report structures, progress tracking, and supervision
- Overview of management and investment method in the fund
- Studying the process of the fund exit from the plans
- The method of ending the cooperation and liquidation of the fund
Note1: Proceedings of the negotiations will be recorded and kept as supporting documents.
The supervision method on the activity of the fund depends on the type of the institution’s partnership and the contract. The following should be considered in this activity:
- The supervision on the fund will be based on “the regulation for supervision on joint investment fund”.
- Monitoring guidelines must be stated in the contract to guarantee execution.
- The supervision reports will be given to the CEO and plans evaluation committee, according to the different methods of the proposed regulations.
In the case that the conditions of the fund are undesirable, based on the monitoring reports, decisions are made by the CEO or other authorities. These decisions must be stated in the partnership contract.
After finalizing the details of the partnership in negotiations and meetings, “the contract for establishing joint investment fund” will be signed between BARKAT and the party (parties). The most important things to be included in the contract are:
- The fund ‘s field of activity
- The development level of the businesses supported by the fund
- The model of designing the mechanisms
- Fund management team
- The model of preparing the cost of management
- The model for participation of other partners
- General considerations for investment in plans
- The amount of investment and its payment schedule
- The model of distributing the generated profit
- The conditions of contract liquidation
- The guarantees for the execution of the contract
- The commitment of the investor institution to manage, control and have supervision on the fund
Roles, tasks, commitments and responsibilities of the two sides.
Investment in a business
A large business demands big capital and high risk. In addition to creating synergy in capital resources, joint investment reduces the risk of investment. Our cooperation can reduce this risk and provide a large capital to develop knowledge-based businesses. In this cooperation, we will utilize our experience, connections, and financial and human resources for the development of entrepreneurship and the increase of capital.
1. Identifying plans and preliminary selection
Share with us your proposal for investment on a business. Your proposal will be evaluated in a specific
The joint investment service of BARKAT ventures has the following fundamentals and rules:
- BARKAT’s priority is to cooperate with other investors equally. By this principle, in addition to using the financial and business resources of other investment institutions, the goals of developing business networks and knowledge-based infrastructure will be fulfilled.
- In this service, the private sector has priority over the state and government sector.
- In the plans where other institutions are only investors, investment rules, procedures, and processes will be adjusted and executed. Other investors should accept this and collaborate accordingly. The execution guarantee for this principle will be stated in the contract.
- In the plans where BARKAT is the only investor, investment rules, procedures, and processes will be adjusted and executed by the other entity and BARKAT will only advise and approve it.
- Joint investment has priority over single investment by BARKAT.
All interactions between BARKAT and other entities (including BARKAT foundation) are documented and can be referred to, based on specific contracts.
۲. Secondary selection and detailed evaluation
Your proposal will be evaluated by an evaluation committee that is comprised of our experts. Upon approval of the details in your proposal, a contract will be signed and our cooperation will formally begin.
۳. The contract and the control
Our cooperation, based on the
The types of partnership are as follows:
- BARKAT is the only investor: in this type of partnership, BARKAT only provides the needed capital. There will be a final contract with the partner entity, and a specific supervision mechanism will be defined. Where investments higher than 500 million tomans are made, after receiving the report of “Didgahane Novin” institution, the plan will be referred to the board, and if approved, the process of final contract and supervision will be set in motion. If the plan is not approved by the board, it will be introduced to other BARKAT services or it will be registered in BARKAT’s plan database.
- The partner entity is the only investor: in this type of partnership, the partner entity only provides the required fund and BARAKAT is responsible for the processes of investment, supervision and control. In this partnership, first the contract is finalized, and the rest of the process is similar to the direct investment service.
- The plan is jointly invested, managed and controlled: in this partnership, the most important part of the process is accurately defining the roles, duties, processes and activities of BARKAT and the partner entity in the contract. In addition, a mechanism must be designed for monitoring and supervising the execution of partnership.
The first and the third types of partnership require a specific mechanism for supervision on the execution of partnership with the partner entity. Supervision solutions in this part, will be defined based on “the regulation for supervision on joint investment on plans”. In addition, the following items should be considered:
- In the contract with the investor entity, a step by step investment model will be used.
- Input control will be executed (in plans with a high chance of success)
- As a supervision solution, a BARKAT representative will be on the board of the fund receiver company.
- Documenting monthly, quarterly and annual progress records in contracts.
- Holding meetings with the investor entity when necessary (this will be mentioned in the contract).
- Allocating company experts for distant monitoring of the company that has received the fund.
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