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Q[X] 20[XX] PORTFOLIO REVIEW MEETING 1 (PRM1) POA & RUNNING MEETING NOTES PURPOSE The purpose of this meeting is to provide the IM Division team, including the Portfolio Manager (PM), Relationship Managers (RM), Shared Growth Services - Group COO and Shared Growth Services - Group CFO and Director of Asset Management, the opportunity to discuss and analyze the financial performance of each portfolio company (per the completed Portfolio Company Dashboards), review the portfolio company commentary received thus far, and draft the [INSERT INV./FUND MANAGER NAME] commentary (from the investment manager’s perspective) for each company for the respective investor reports (IRs). OUTCOMES ●
Informed and insightful financial commentary drafted for each portfolio company that provides a narrative about the financial performance of the portfolio company.
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Value-added [INSERT INV./FUND MANAGER NAME] commentary drafted for each portfolio company from the perspective of the investment/fund manager that provides additional insight into the overall performance of the company.
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Clear next steps are established for each portfolio company to secure any outstanding information, clarify information, and/or correct wrong information.
AGENDA 1) Review the portfolio company dashboard for each portfolio company and capture the rough, draft financial commentary to be finalized and included in the corresponding IR: a. Review the completed Financial Metrics table i. How were the portfolio company’s sales in comparison to last quarter? Last year? ii. What is the gross margin, operating margin, net profit margin telling us? iii. Is the portfolio company in a position to cover its short-term liabilities / debt / interest payments (i.e., the interest and current ratios)? iv. How is the portfolio company’s overall profitability – discuss ROE and ROA v. Is the portfolio company moving inventory quickly enough? If not, why? vi. Is the portfolio company collecting its receivables in a timely manner? If not, why?
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vii. Is the portfolio company paying its creditors in a timely manner / per agreed upon terms? If not, why? viii. If the investment firm/fund had to sell its position in the portfolio company tomorrow, is the portfolio company solvent? b. Review the financial statements i. Were there any major accounting errors that required a corrective action meeting? 1. If yes, are there any outstanding accounting errors that the investment/fund manager and its investors need to be aware of at this time? 2) Discuss [INSERT INV./FUND MANAGER NAME]’s commentary, the purpose of which is to provide [INSERT INV./FUND MANAGER NAME]’s external perspective on the overall performance of the portfolio company, the firm’s perceived risks and opportunities, as well as the work the firm plans to accomplish in partnership with the portfolio company in the coming quarter. a. Did the portfolio company achieve its financial milestones for the quarter? i. If yes, provide details on what occurred and how/if [INSERT INV./FUND MANAGER NAME] contributed ii. If no, what were the barriers to accomplishment? b. Did the portfolio company achieve its operational milestones for the quarter? i. If yes, provide details on what occurred and how/if [INSERT INV./FUND MANAGER NAME] contributed ii. If no, what were the barriers to accomplishment? c. Did the portfolio company generate positive social impact? i. If yes, provide details on the nature of impact achieved (e.g., advocating women’s economic empowerment by promoting female managers). ii. If not, or the portfolio company created negative impact and/or lost ground (e.g., operations halted, resulting in the need to lay off full and part-time employees), provide details on what happened. d. What are the major risks that [INSERT INV./FUND MANAGER NAME] perceives with the portfolio company and the investment? i. Does [INSERT INV./FUND MANAGER NAME] and/or the company have a risk mitigation / plan of action in place for the upcoming quarter so that the company can achieve results going forward?
MONITORING AND EVALUATION TOOL
RUNNING MEETING NOTES ASSIGNMENTS & NEXT STEPS COMPAN Y
FIN. STMTS & DASHBOA RD
FINANCIAL COMMENTARY
PORT. CO. COMMENTARY
[INSERT INV./FUND MANAGER NAME] COMMENTARY
IMPACT TABLE
NEXT STEPS
Company Name
Updated / Not Updated
Not Started / Draft / Done
Not Received / Draft / Done
Not Started / Draft / Done
Not Received / Draft / Done
Next Steps
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