Investment Process

Stage 1: Initial Review / Business Plan

QUADRIGA’s investment decisions are prepared in a structured process which initially attempts to identify attractive projects in an efficient initial review. Upon reaching the decision to proceed, the diligence process involves the assessment by our experienced investment professionals, business specialists working with the Fund, as well as a profound financial and legal diligence process. Due to the costs involved with the extensive diligence process, we only initiate this process once we are convinced of the compelling nature of the investment opportunity. The final investment decisions are conclusively decided by the Fund's investment committee and are based on recommendations provided by Quadriga Capital Russia's investment team.

Therefore if you believe that your business opportunity fits our investment parameters, you should send us a brief Business Plan (less than 4 pages) that contains the basic strategy and rationale for an investment.

Stage 2: Letter of Intent / Term Sheet

Following the initial review the project team usually determines the basic parameters of the investment (including structure, shareholding, basic terms and rights as well as the applicable exit mechanisms). This is then documented and agreed to in a letter of intent or term sheet.

• Agree upon the conditions of the investment
• Draft the letter of intent
• Carry out remaining due diligence

Stage 3: Due Diligence & Negotiation

The final stage of the investment process consists of QUADRIGA and its external sources (including lawyers, accountants, and other industry experts) conducting an in depth due diligence process together with the company’s management team. At this stage, negotiations take place and the final investment structure is determined. Typically the time required for Stages 1 through 3 ranges from approximately from three to six months and largely depends on the preparedness and cooperation of the target company’s management team.

Final negotiations of the financial terms and conditions are based on the previously signed letter of intent.

Stage 4: Work as Shareholder

Subsequent to the disbursement of Funds and the purchase of shares, QUADRIGA becomes a shareholder in the company and QUADRIGA's local team members and its representatives become members of the company's Board of Directors.

How Quadriga Capital Russia typically works with its portfolio companies:

1. QUADRIGA is represented on the Board of Directors by QUADRIGA's staff or other specialists.
2. QUADRIGA usually has blocking rights comparable to those of a 25%+1 shareholder.
3. QUADRIGA receives quarterly and annual reports on a regular basis from the company.
4. QUADRIGA receives audited annual financial reports (preferably IFRS standards) from the company.

Stage 5: QUADRIGA's Exit

After completing the major development steps and reaching the set forward growth objectives, QUADRIGA will seek to sell its stake in the company, preferably together with its partners and co-shareholders.

Who can purchase QUADRIGA's shares?

• Industrial or financial investors (both Russian and foreign)
• IPO