Investment Process

How We Source, Structure
and Protect Capital

Batavian Capital follows a rigorous, repeatable investment process from deal origination through to realisation. Every step is governed by our founding principles: downside first, asset-backed structuring, and disciplined capital deployment.

6
Process stages
40+
Deals evaluated
<15%
Acceptance rate
6
Stages
1
Sourcing
2
Screening
3
Due Diligence
4
Structuring
5
Monitoring
6
Exit
The Process

Six Stages from
Origination to Exit

Our investment process is designed to identify, evaluate and structure opportunities with asymmetric risk-reward profiles. We decline the vast majority of deals that cross our desk — only those meeting our strict criteria progress through the full process.

At a Glance
Deals reviewed annually
80+
Full due diligence conducted
~20%
Investment committee approval
<15%
Avg. time sourcing to close
6–10 wks
Capital loss events since inception
0
1
Stage One
Deal Origination & Sourcing

Batavian Capital sources investment opportunities through a curated network of intermediaries, legal advisers, real estate professionals, corporate advisers, and direct counterparty relationships. We do not rely on public deal flow — our pipeline is relationship-driven and selective.

  • Proprietary deal flow via trusted professional network
  • Direct outreach to asset owners and borrowers
  • Sector-specific monitoring of target markets
  • Intermediary and adviser partnerships across Western Europe
Ongoing · Relationship-Driven
2
Stage Two
Initial Screening & Mandate Fit

Every opportunity is assessed against our investment criteria within 48 hours of receipt. This rapid screen eliminates deals that do not meet our fundamental requirements — asset quality, security structure, minimum return threshold, and mandate alignment.

  • Mandate alignment check — Real Asset Income or Secured Opportunities
  • Minimum return hurdle assessment
  • Collateral and security package preliminary review
  • Counterparty profile and jurisdiction assessment
  • Estimated decline rate: ~80% of inbound deal flow
48-Hour Response · Internal Review
3
Stage Three
Full Due Diligence

Deals that pass initial screening enter a structured due diligence process. This is the most resource-intensive stage and covers financial, legal, structural, and operational dimensions. External advisers are engaged where appropriate.

  • Financial analysis — cash flow modelling, stress testing, scenario analysis
  • Legal due diligence — title, encumbrances, enforceability of security
  • Asset valuation — independent third-party appraisal where required
  • Counterparty due diligence — AML/KYC, credit history, track record
  • Structural review — covenant package, seniority, intercreditor arrangements
  • Environmental & regulatory assessment for real asset investments
2–6 Weeks · External Advisers Engaged
4
Stage Four
Investment Committee & Structuring

Approved opportunities are presented to the Batavian Capital investment committee via a formal Investment Memorandum. The committee evaluates the opportunity against the full risk-return framework before approving deployment. Structuring is optimised for downside protection.

  • Formal Investment Memorandum — risk, return, structure, recommendation
  • Investment committee review and approval requirement
  • Optimal structure determination — senior secured, mezzanine, equity
  • Covenant package design — financial, reporting, event of default
  • Security package finalisation — charges, guarantees, step-in rights
Committee Approval Required · Unanimous Vote
5
Stage Five
Active Monitoring & Portfolio Management

Post-investment, every position is actively monitored against agreed performance metrics, covenant compliance, and macro conditions. We maintain direct communication with counterparties and respond immediately to early warning indicators.

  • Monthly financial reporting review per position
  • Quarterly portfolio review — performance, risk, and covenant compliance
  • Active engagement with counterparties and asset managers
  • Early warning monitoring — trigger events, market conditions, asset values
  • Investor reporting — quarterly NAV, performance, and commentary
Ongoing · Monthly & Quarterly Cadence
6
Stage Six
Realisation & Exit

Exits are planned from the outset and managed with the same discipline as origination. We target clean, structured realisations that maximise recovery while protecting investor capital. Exit planning begins at the due diligence stage.

  • Scheduled maturity — repayment at agreed tenor for credit positions
  • Strategic sale — asset disposals at optimal market conditions
  • Refinancing — counterparty refinancing of Batavian facilities
  • Enforcement — exercise of security rights in distressed scenarios
Planned at Origination · Multiple Exit Routes
Investment Criteria

What We Look For

Our investment criteria are non-negotiable. A deal must satisfy all core criteria to progress to full due diligence. We do not compromise on downside protection in pursuit of higher returns.

The criteria below reflect our founding conviction: every euro of capital deployed must be backed by a clear, enforceable claim on identifiable assets — and every deal must offer a credible path to recovery even in a downside scenario.

Tangible Asset Security

All positions must be secured against identifiable, realisable assets. First-lien security preferred; any subordinated position requires exceptional risk-adjusted compensation.

Minimum Return Threshold

Target returns must meet or exceed our mandate-specific hurdle rates on a risk-adjusted basis. We do not deploy capital below threshold to fill portfolio.

Covenant Protection

Robust covenant packages are mandatory — financial maintenance covenants, information undertakings, change of control provisions, and clearly defined events of default.

Identifiable Exit Path

Every investment must have a clearly defined primary exit route and at least one credible secondary option identified at the outset. Open-ended positions are not acceptable.

Jurisdiction & Enforceability

Investments are restricted to jurisdictions where security interests are legally enforceable and recovery mechanisms are reliable. Primary focus: Netherlands, Belgium, Germany, United Kingdom.

Counterparty Quality

Counterparties must satisfy our AML/KYC requirements and demonstrate a verifiable track record. Reputation and integrity are non-negotiable selection criteria.

Exit Framework

Four Defined Exit Routes

We plan exits from day one. Every investment mandate defines the primary and secondary exit path before capital is committed. This discipline ensures that we never become trapped in a position without a credible realisation strategy.

Route 01
Scheduled Maturity

For credit positions, repayment at contractual tenor — the cleanest and most predictable exit. All credit facilities are structured with defined maturity dates and amortisation schedules.

Route 02
Strategic Asset Sale

For real asset and equity positions, sale to a strategic or financial buyer at a price that realises value for investors. Timing is optimised against market conditions.

Route 03
Counterparty Refinancing

Borrowers refinance Batavian facilities through institutional lenders or capital markets as their businesses mature and credit profiles strengthen — a positive outcome for all parties.

Route 04
Security Enforcement

In distressed scenarios, Batavian Capital exercises its security rights to recover capital. The strength of our security package means enforcement is a genuine and reliable last resort.

Begin a Conversation

Ready to Discuss an Investment Opportunity?

Family offices, institutional allocators, and qualified investors are welcome to initiate a conversation with the Batavian Capital investment team.