Process And Execution

Midas Club High Level Strategy

  • Very late stage, pre-IPO or pre-liquidity event investments that should exit  in 1 – 3 years
  • Primarily preferred and convertible investments
  • Target limited exposure to any one company

Midas Club Members In Contact With 20-50 Funds And Investment Banks Per Week/Month In Order To Identify Opportunities

  • We are currently reviewing opportunities with some of the world’s leading late stage private companies

Once We Identify An Imminent Opportunity We Quickly Apply Our Screen And Perform Further Due Diligence

  • Core criteria screen – High margins, global growth, millions of customers, limited competition, proprietary offering, high degree of engagement and switching costs
  • Due diligence – Financial, accounting, regulatory, business and management diligence. Management should own a meaningful stake

A Club Investment Summary Is Prepared, That All Members Can Contribute To

  • Business opportunity and term sheet or indicative summary is prepared or executed internally by club members and collectively reviewed
  • All members provide an opinion or a “yes/no”
  • Many members provide detailed thoughts and/or analysis
  • Simple majority typically required to make a decision

Midas Club Executes The Investment

  • Final diligence
  • Investment structure finalization
  • Investment structure, board positions, shareholder class rights, exit rights etc.
  • Legal document review and definitive agreement execution

Midas Club Monitors Investments

  • Monthly unaudited and annually audited financials are preferred
  • Meetings with executives to discuss performance, strategy, opportunities and risks
  • We suggest transactions or other opportunities that add significant value to the business

Exit

  • Midas Club members can help drive or influence overall exit strategy
  • While most of our targets usually have well thought out exit plans we can usually add value by influencing exit strategy in an unbiased fashion that solely maximizes shareholder value