SD-04.2 — Deal Screening & Triage
Business Domain: BD-04 Direct & Co-Investment (Front office) · Applies: PRIV
Purpose
Applies first-pass filters to decide which sourced opportunities advance to full due diligence. Screening & Triage is the funnel between origination and diligence: it weeds out the opportunities that do not fit the mandate before the firm spends the cost of full diligence on them, and it produces the indicative offer that opens negotiations on the deals that pass. It is a deliberately fast, low-cost gate.
Service Operations
- Screen against investment criteria — test the opportunity for fit on size, sector, geography, return profile and mandate.
- Execute the confidentiality agreement — sign the non-disclosure agreement to gain data-room access and detailed financials.
- Conduct preliminary diligence — review the information memorandum, headline financials, growth prospects and sector comparables; for a real asset, a desktop location and planning-status review.
- Build the first-cut return model — an indicative model of the return — the rough internal rate of return and multiple.
- Prepare the screening memo — the deal-review note for the deal committee.
- Make the triage decision — pass, decline or park; for a deal that passes, issue an indication of interest or non-binding offer.
Inputs and outputs
- Inputs: the deal pipeline — the PM-15 deal records from SD-04.1; the non-disclosure agreement and data-room access; the information memorandum and seller financials.
- Outputs: a screening memo, an indicative valuation, the triage decision, and — for a deal that advances — an indication of interest or letter of intent, consumed by SD-04.3 Investment Due Diligence.
Entities
- Consumes: Legal Entity (E-01), Instrument / Asset (E-02), Direct Real Asset (RA-01); PM-15 Deal / Investment Opportunity — the sourced deal record screening triages, owned by SD-04.1.
- Owns: none — the screening memo and indicative valuation are analytical artefacts attached to the deal record (owned by SD-04.1); the triage decision lands on the deal’s stage history.
Standards
- No external standard governs screening. The non-disclosure agreement → information memorandum → indication of interest → letter of intent sequence is the practitioner convention.
Open extensions
- Whether the screening memo and the indicative valuation warrant first-class status alongside the deal record — they stay analytical artefacts today; the deal record itself is first-class (PM-15).