Investment Approach
How We Allocate Capital
Aristea applies a consistent, eleven-point investment filter to every opportunity it evaluates — regardless of source, sector, or projected return. Opportunities that cannot withstand this level of scrutiny are declined at screening, not after extended engagement.
The Filter
Eleven Points, Applied Without Exception
One-Line Assessment
A clear, immediate read on whether the opportunity merits further review.
Strategic Fit
Alignment with Aristea's existing focus areas and long-term platform direction.
Business Model Quality
How the underlying business actually generates and retains cash.
Market & Regulatory Context
Sector dynamics, competitive position, and the regulatory environment it operates within.
Governance Quality
Ownership clarity, decision rights, and the presence of a documented audit trail.
Financial Logic & Cash Flow
Whether return assumptions are supported by demonstrated, not projected, performance.
Key Risks
Full risk mapping across liquidity, governance, regulatory, key-person, and market dimensions.
Due Diligence Required
The specific documentation and verification needed before any commitment is considered.
Red Flags
Surfaced explicitly and never buried beneath favorable narrative.
Negotiation Position
Terms, protections, and structure required if the opportunity proceeds.
Recommendation
A definitive outcome: Proceed, Pass, or Conditional — never left ambiguous.
Screening Discipline
What Aristea Is Skeptical Of
Certain patterns are treated as immediate screening failures rather than negotiating points. High projected returns paired with claims of low risk. Artificial deadlines designed to compress diligence. The absence of audited financials. Unclear ownership or unexplained related-party structures. Promoters who rush decisions instead of welcoming scrutiny.
These are not treated as caveats to work around — they are disqualifying by default until resolved with documentation.
Risk Dimensions Reviewed