Question

Imagine that you are a fund manager in charge of making investment decision. Your organization currently has 100 crores Taka to be invested. In the past, you have collaborated with other funds to pool resources for investing in promising projects and within your network, total investment capacity is 500 crore Taka (maximum). Solshare approached your firm to raise 20 crore Taka for a share of 20% of there company. Would you invest in the company? Why or why not? If yes, would you go solo on this investment decision? Support your decision

Answer 1

Currently my organisation has invested 100 crores taka. After that they collab to pool resources on promising project which is maximum upto 500 crores taka. Now this tells us the sutuation of the company. That is the company or the organisation is ready to invest but for promising projects that will lead to future profits it requires collaboration of pool resources. Therefore, financially the organisation is not so strong but has high ambitions.

Now if Solshare approached the firm to raise 20 crore a share which is 20% of there company. Being the fund manager, I am open to this offer because this will make the organisation more strong financially. Before doing that I would get a background of the firm's history and credit score. Even anonymous comments in the website to get an idea of the firm. If there balance sheet is good. I am ready to go solo in this investment decision. 20 crore taka for a share which is 20% of their company. This will boast my firm and having a connection with other company gives us to know more clients. That means more projects more investment and future profits. Even when we are investing risk are there but when projects are promising and adds up to good numbers. This will prosper the company. As a fund manager I will go it.