Hermes Growth Partners

1.  There is a fit with one or more of HGP’s thematic growth areas:

HGP has developed a short list of TMT growth themes in which we expect annual multi-billion dollar market growth over the next decade.  These are the areas in which we seek opportunities.

2.  The investment meets or exceeds the Fund’s criteria for expected financial returns and governance:

The Fund expects certain rates of return based on the risk profile of each investment. Although open to both controlling and non-controlling investment stakes, there are governance guidelines to ensure that management teams and long term investors are aligned.

3.  There is a way for HGP to add value to the investment

HGP works actively with management teams and other investors to help drive growth. HGP has several ways in which it helps companies drive growth, including placing key members of the management team, acting as advisors to the existing management team, and investing in a company via another investment to accelerate the trajectories of both companies.

In each case, HGP conducts diligence and builds a growth plan prior to getting involved.   In exceptional cases, HGP can work on an advisory basis to help a company grow.  Typically this involvement will be restricted to companies which have high potential but are still one or two stages of development prior to being candidates for capital investment from the Fund.