Investment structure of Silk Road Fund

(By chinca)

Updated: 2016-06-26 16:00:09

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Investment Committee
The Investment Committee is a corporate body to review and make decisions on the Fund's investments under the leadership of the Fund's management. Its main responsibility is to make decisions on the Fund’s asset allocation, investment strategies and investment-related activities such as investment and exit decisions.

Investment Decision-Making Mechanism
A well-defined investment decision making mechanism has been instituted, which includes project selection, project reserve, preliminary review, preliminary approval, final approval and post investment management. It covers all front, middle and back office functions.
In terms of project selection, the Fund pays attention to cooperation with industrial partners to make joint investment in project that promote connectivity and international industrial capacity cooperation. In general, the Fund as a financial investor does not seek to have a controlling stake.
In terms of project reserve, the Fund actively looks for new projects, seeking investment opportunities through multiple channels, including proposal from target companies and reference from other organizations. The Fund also seeks out projects on its own and already has a reserve of potential projects. These include projects in the fields of infrastructure, resources and energy development, industrial capacity cooperation and financial cooperation in Asia, Europe, Africa, America and other areas.
In terms of the project preliminary review, preliminary approval and final investment decision, the project investment team carefully and thoroughly evaluates the proposed project in accordance with the Fund's internal protocol. It will then report the results of assessment together with the negotiated deal terms to the Investment Committee for final review and approval.
Project execution and management also benefit from the support of the middle and back offices in respect of risk management and operational compliance. The middle office is in charge of risk control and post-investment management, and the back office is responsible for transaction settlement and management of the Fund's investment.