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What is Trine's due diligence process?
What is Trine's due diligence process?

Explanation of how Trine assesses and approves new borrowers.

Christoffer Falsen avatar
Written by Christoffer Falsen
Updated over a week ago

As a first step when seeking financing from Trine, the borrower sends us a brief presentation of the company. We have a first digital meeting with the company to establish if they pass our screening criteria:

  • 1 million EUR of assets deployed

  • Minimum of 6 months of operational track record

  • Ability to raise sufficient equity, minimum 20%

Trine ensures we have received a full data room containing an overview of the business and the below critical information:

  • Financial statements and management accounts

  • Business plan and forecast

  • Organizational overview

  • Technical and financial portfolio information

An initial assessment of the borrower is made and presented to the investment team at Trine. The following aspects are critical to this early assessment:

  • Portfolio quality

  • Operational track record

  • Transaction structure

  • Proposed pricing and security to the transaction

Desk review and site-visit

Trine conducts a desk review of the borrower as well as a visit to their office and their installations to confirm the desktop review. The desk review consists of reviewing the financial models, financial reports and other key documents related to the business and the transaction. Typically Trine spends 2-3 days with the borrower to cover the main functions of the business as well as interacting with key employees, customers and suppliers. Our internal risk assessment tool guides us through this process, which you can read more about here.

Investment Committee

The information gathered in the above steps are summarized in an investment document presented to an internal investment committee at Trine. The investment committee looks at the residual risk towards investors, the proposed structure as well as if the transaction is in line with our investment policy. If a positive decision is taken, the Investment team prepares the investment contracts and security documents together with lawyers. Once all agreements are in place an investment will be available on the homepage.

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