Process

Themes and Fund Composition
We believe that portfolio companies have potential for the fastest growth when they are serving markets that are undergoing major transitions or “sea changes.” We seek to build our funds by proactively determining the imminent market transitions underway, and seeking companies, management teams and products that will be the beneficiaries of these changes. Some of the major themes which we have invested in behind the past and the resulting portfolio companies include:

	Theme		Coral Portfolio Company
	"Digitization of television broadcasting"		Vizrt The industry standard platform for graphics and content management for news broadcasters worldwide
	"Adoption of internet broadband services in suburban and rural areas"		Advanced Fibre Communications The pioneer in extending the reach of digital telecom services into the suburbs
	"Introduction of interactive media"		Macromedia The leader in interactive, internet-based content experiences
	"Transition from copper to fiber optics in the access layer of the network"		Optical Solutions/Calix The largest pure play provider of fiber-to-the-home solutions
	"Introduction of high levels of integration into the photonics domain"		Infinera A market leader in long haul and ultra long haul fiber optics

Our investment team members invest a great deal of time understanding these transitions by specializing in specific market segments. Focusing allows more in-depth knowledge and research, which, in turn, results in better investment decisions and more insight that can aid in the success of our companies.

Champion
Our group operates using a champion model. Companies seeking our capital and value-add typically start to engage with us by working with one of the members of our investment team who is a “believer.” That team member will typically meet with the company’s executives at first and then promote the opportunity to the investment team.  If the team then determines that the company fits our overall fund strategy and investment criteria, the company’s CEO and other key executives will be invited to make a pitch to our group.

Due Diligence
After successfully securing our group’s interest, we activate the due diligence process. Several team members typically work with a prospective investment. Due diligence includes an in-depth look into the company, typically including discussions with the company’s key customers, discussions with key industry executives who have worked with the company’s management, our own financial modeling, detailed investigations of the company’s technology and a legal review of the company’s structure, obligations, liabilities and relationships.

Initial Investment
Upon completion of due diligence, we work with the company and its investors to structure a new round of financing. We seek projects where our capital will help achieve a new incremental value creation milestone. We also favor projects where the investor base has enough capital to fund the company to break-even. Oftentimes, we work with prospective investments to create such a syndicate if it is not in place. We also typically exit the initial investment stage by asking management to meet again with our team to review key priorities and to establish a jointly constructed growth plan.

Execution & Scaling
During the initial investment process, each of our portfolio companies is mapped into a management framework that we use to work with portfolio company leadership to define the company’s operating priorities. Please see Approach for more information on some of the key activities that we assist with in this framework.

Financing Growth
In all of our investments, Coral expects to not only make an initial investment but to also be in a position to support the company as it undertakes new growth opportunities. In addition to our own capital, our well established market presence has yielded a large network of co-investors which we call upon as new capital needs arise. Over the years we have syndicated over $1 billion of capital for Coral’s portfolio companies. We are also able to assist our companies in raising capital from non-traditional equity sources and non-equity sources.

Exit
With scores of successful IPOs and M&As behind us, we have deep experience in aiding in the exit process. Our vast experience in the business has helped us to develop a large network of potential strategic and financial buyers as well as key professionals that can assist with the exit process.