One of the world’s largest sovereign wealth funds retained Citihub to advise on a proposed investment in a domestic cloud and managed services provider. This was the first such investment the fund had considered, and the management team felt that they needed support to understand the technologies involved and the dynamics of the global, regional and local market.
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How Citihub Consulting Helped
Citihub began by performing a high-level review of an investment memorandum that had been produced by a global investment bank. The team then educated the fund management and legal teams about IT services, cloud technologies and how they are being adopted across both mature and developing markets. This included an examination of the drivers and barriers to adoption for different end-user communities. The Citihub team then focused on the proposed provider. They conducted detailed due diligence of all aspects of the provider’s existing asset base, delivery capability, customer portfolio, sales and marketing capability, sales pipeline and financial data.
The findings were documented and the outputs and observations were used to further critique the provider’s investment memorandum and proposed strategy in a written report. Using pre-existing market intelligence (produced by the Citihub Data Centre Intelligence Unit) a joint Citihub and client team constructed a detailed financial and scenario model based on a series of adoption outcomes across the provider’s service stack. This model was then used to assess the affordability of the proposed financing and the risk to the fund as the lender.