The Investment Process

The investment appraisal process comprises of a number of distinct stages.

Stage 1 - Online Appraisal

If, following a review of the Scottish Investment Fund investment criteria, you believe that your organisation is eligible to apply to the fund, please complete our simple online form. A member of the Investment team from Social Investment Scotland will contact you directly for a brief discussion about your organisation and it's future plans.

Stage 2 - Investment Assessment

During the initial phone-call and provided your organisation on first impressions appears to meet the eligibility criteria, you will be asked to provide at the minimum:

• Current business plan including financial projections for at least the next three years incorporating profit and loss accounts, balance sheets and cash-flow projection;
• Last two years' audited accounts (if available);
• Management accounts detailing up to date income/expenditure for the current financial year; and
• Anything else your organisation or the investment team feels is relevant to the application.

The closing date for applications and business plan submissions will be 5pm on October 14th 2011

The SIF Investment Manager will then undertake a detailed review of both the financial and social aspects of the proposal with applicants being assessed on their social impacts, financial viability and sustainability.

At this stage, each organisation will be informed as to whether their application is being taken forward to the SIF Investment Panel or not.

Stage 3 - Approval

For those applicants being taken forward to the approval stage, the Investment Manager will prepare a detailed Report and Recommendation for submission to the SIF Investment Panel. The decision of the Investment Panel will be notified to the applicant and confirmed formally in writing.

If the applicant receives investment panel approval the SIF Investment Manager will provide a Schedule of Outline Terms and Conditions setting out the proposed structure of the investment package.

Stage 4 - Legal Completion

Where an Investment Application has been approved a formal offer letter detailing the agreed terms and conditions of the investment will be produced for signature by the applicant(s). The SIF Investment Manager will monitor the completion of all conditions, including the completion of any security, set out in the formal offer letter. Where security is involved the Investment Manager will instruct the solicitors acting on behalf of the Scottish Investment Fund to progress matters with the applicant's solicitors.

Note: Funds will only be released on completion of all conditions detailed in the formal offer letter.

Stage 5 - Post Investment Monitoring

The SIF Investment team will maintain regular contact with the Investee following drawdown of the investment to monitor progress towards the attainment of the agreed social outcomes and continuing compliance with the undertakings agreed to under the terms of the offer letter.