How are projects selected at Raizers?
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Who selects the operations?
Deals are sourced by the sales team before being handed over to the audit team for the analysis phase.
Before being posted online and offered to investors, each project undergoes a rigorous selection process. It’s worth noting that, of all the proposals analyzed, on average one out of every two will not make it to the fundraising phase!
The selection committee then decides whether or not to approve the projects that will be featured on the platform.
What is the selection process?
Each transaction is handled by an analyst from the audit team. Two key areas are addressed during the audit:
- The operator: its experience, the financial stability of its organization, its reputation, etc.
- The project: its location, profitability, alignment with the market, whether it is secure from an administrative standpoint (planning permits) and a technical standpoint (construction insurance, contractors), its level of pre-marketing, etc.
Following this initial study phase, the analyst can assist the operator in structuring the project, and in particular, examine the types of security that can be put in place (mortgage, security trust, surety bond, first-demand guarantee, etc.).
Once these steps are completed, the proposal is presented to the selection committee, which consists of several members of the Raizers team. This committee reviews the project and determines whether its structure allows it to be offered to investors on the platform—and, if so, under what terms.
And what are the selection criteria?
Every project is different, and the selection criteria are not set in stone; what matters is striking a balance between the risks identified during the analysis and the collateral provided to secure the loan. To this end, analysts use an internal scoring tool to rate each application and thus quickly assess the risk-to-collateral ratio of the transaction.
Raizers’ sales and audit teams work closely together to select the projects that will be presented to investors on the platform. Nothing is left to chance during the review of applications, ensuring that only those projects that strike the right balance between risk and security are offered to investors.
*Disclaimer: Investing in stocks or bonds involves a significant risk of partial or total loss of principal, as well as a risk of illiquidity.
Watch our video explaining how to select operations