Our Investment Philosophy
Our investment philosophy is grounded in a commitment to delivering attractive, risk-adjusted returns for our partners. We achieve this through meticulous due diligence on all credit and equity opportunities, evaluating both company-wide and project-level factors.
We focus on maximizing expected returns, rather than just potential returns, by employing a fundamentals-driven, bottom-up approach to investment selection. This approach leverages the extensive depth and experience of our investment team, ensuring that each opportunity is carefully assessed to align with our rigorous standards for value creation and long-term success.
Project Partner Funds Investment Objectives
The primary focus of Project Partners Fund is to preserve our partners’ capital by sourcing secure investments that can generate an MOIC of approximately 2.0x cash within five years, along with unlevered annual returns of 4-6% on the debt component. Our strategies for delivering this value are centered around:
Investment Object
We start with risk analysis. This enables DiliCapital to integrate techniques that build risk mitigated investment portfolios with successfully blended returns.
We attract quality applicants through global outreach, allowing us to originate “A” class investment targets capable of qualifying for our risk-intolerant Hybrid Mezzanine/PE model.
Our qualified project must produce a minimum 2.0x cash-on-cash return within five years and achieve unlevered returns on the cash-management Mezzanine component of 4-6% and above annually from day one.
We rely on our investment banking exit strategy by bundling our investment’s accumulated equity interests into various offerings, including Master Limited Partnerships.
Strong ESG practices support global decarbonization and create long-term value for stakeholders.
HOW WE OPERATE
At Project Partners Fund, we prioritize capital preservation by targeting secure investments that deliver an MOIC of 2.0x cash within five years and unlevered annual returns of 4-6% on the debt component. Our operational strategies focus on:
DiliCapital team collectively has significant experience in both project investment and M&A advisory that spans over 50 years and multiple market cycles.
DiliCapital assists portfolio companies by advising senior management on broad strategic initiatives, facilitating new business relationships, supporting financial management and planning and providing guidance with respect to capital raising activities and acquisition strategies.
Before making an investment, DiliCapital carefully evaluates potential exit strategies. Our bundled services approach, combined with geographic expansion, is designed to enhance the value of the offering, making it more attractive to potential buyers and driving multiple arbitrage opportunities upon exit.
Successful lending involves an intense, hands-on process which is essential to avoid losses. While our approach is simple, its consistent execution over many years is more involved and is based on the following parameters:
DiliCapital has access to research analysts and industry contacts to bring independent insight into companies, market trends and industries when we conduct our diligence on prospective investment opportunities.
Our portfolio is diversified across investment size, investee companies, geographies, and asset types, which helps to smooth returns and reduce exposure to any single area. With extensive experience navigating challenging situations, we are well-equipped to turn potential risks into successful outcomes.
Dili Project Partners Limited Partnership
The Dili Project Partners LP is a private equity co-investment fund managed by Dili Capital Corp., the General Partner, based in Toronto, Canada. Our project finance team offers portfolio advisory services, and the fund invests alongside other partners, focusing on three primary areas:
- Core sectors: real estate, energy and power, oil and gas, transportation, education, industrial services, and technology services.
- Shovel-ready projects only, with no development or exploration-stage investments.
- Enabling technologies that support these sectors.
The fund aims to secure total commitments of $250 million and is open exclusively to accredited investors, with a minimum investment of $1 million. Investments can be made through pledged financial instruments, such as bonds, or the issuance of bankable collateral.