As an alternative investment specialist in a startup company, there are several key responsibilities needed to be fulfilled. Firstly, conducting research and analysis on the latest alternative investment market trends, innovations and performances to identify potential investment opportunities. Secondly, building financial models to evaluate risk and returns of prospective investment deals. Thirdly, preparing investment proposals and presentations to showcase findings and recommendations to key decision makers. Fourthly, negotiating investment terms and executing deals end-to-end once approved. Lastly, monitoring post-investment portfolio to ensure healthy growth and risk management. With domain expertise in areas like venture capital, private equity, hedge funds or real estate, the role covers full lifecycle of alternative investments essential for growth of startups.
Conduct research on alternative investment landscape
As an alternative investment specialist in a startup, it is critical to always be updated on latest market trends, new alternative asset classes and innovations in the space. For instance, actively tracking venture capital and private equity sectors to spot emerging high-growth industries and companies that align with the startup’s vision and could be potential investment targets. Or researching recent regulatory changes in hedge funds and analyzing implications on product strategies. Such research and analysis are imperative to identify the next big alternative investment opportunities that generate superior risk-adjusted returns vital for growth of startups.
Perform due diligence and build investment models
After identifying a prospective early-stage startup or private company for investment, the next vital step is rigorous due diligence across multiple parameters – business & growth viability, financial health, competitive landscape and valuation benchmarking. Investment specialists need to gather and analyze relevant data, interview founders and industry experts, build detailed financial models projecting revenues, costs and terminal value based on reasonable assumptions. The output valuation, return metrics and risk exposures shape the investment proposal and aid decision making by senior management.
Structure optimal investment terms and execute deals
Upon investment approval, structuring the right deal terms that protect the investor’s rights while also aligning incentives with entrepreneurs is crucial. Investment specialists advise on aspects like amount of startup equity to acquire, liquidation preferences, voting rights, negative covenants, information rights and board seats to secure based on specific deal dynamics and risk tolerance. Specialists further drive negotiations, legal documentation, closing and disbursement to ensure smooth investment execution.
Manage portfolio and exits
Post-investment, periodically tracking financials, milestones and industry trends across portfolio companies is essential for alternative investment specialists. Where required, providing value-added services around scaling technology, recruitment, corporate governance and follow-on fundraising through the specialist’s network can help nurture investments. Finally chalking out optimal timing and modes of exits via M&A, IPO, secondary sale or write-off and executing the same yields superior realized returns.
In summary, alternative investment specialists in startups take end-to-end ownership across identifying high-potential deals, evaluating returns and risks, structuring investments, portfolio management and eventual exits to create substantial investment gains. Expert skills in financial modeling, deal negotiation, portfolio optimization and niche alternative asset classes are vital to succeed.