Principal Investment Objective - Tera Capital
Corporation was formed in 1996 as a means of investing in equity
or debt of higher risk, higher potential return
opportunities. Focusing primarily on small cap equities ($500M market cap), the success of the top rated Global Innovation Fund has been followed by two additional products including a Diversified Balanced Small Cap Fund and a High Income Fund.
Investment Strategy - We at Tera
Capital Corporation (Tera) will implement an
investment strategy and process which has been
developed and practiced in prior portfolios. We'll
focus on the following key characteristics:
Industry Focus - We'll seek investments in
the growth markets across all industry sectors including innovation, natural resources, industrials, clean energy, biotechnology, and financials.
These industries represent an
attractive investment emphasis due to
- substantial and diverse market
opportunities,
- worldwide sales potential,
- changing regulatory environments,
- technological innovations,
Investment Process - We at Tera use a
systematic investment process for generating
superior returns. We also take a disciplined
approach throughout each stage of the investment
process, from sourcing transaction flow, to
screening decisions and due diligence; from
structuring and negotiating terms, to working
actively with management teams and realizing
investment liquidity.
Sourcing Transactions - We've established
a broad range of relationships and contacts which
generates a consistent flow of potential investment
opportunities. Furthermore, we take a pro-active
approach to sourcing transactions. In our
experience, we've found that the best referral
opportunities come from company executives and close
relationships with investment professionals. Those
relationships are fostered by maintaining an active
network of individual contacts in the target
industries and investment community, by regularly
reviewing industry journals, and by attending as
many scientific and industry conferences and trade
shows as possible.
In early stage transactions, we're the catalyst
for originating the investment and organizing the
financing syndicate. In most mid-to-later stage
investments, we get to know a prospective portfolio
company and have developed a relationship with
management over a period of time. Building these
relationships has served us well in several ways in
prior investments, including:
- generating investments on a friendlier
basis;
- achieving more favourable terms; and
- being able to more proactively initiate a
financing on a timely basis and avoid a
competitive bidding process.
We've established a reputation for credible,
honest and straightforward communications,
decision-making and advice. This has proven an
advantage in those selective investment situations
where Tera has been welcomed as investment partners
by management teams and co-investors.