Risk Policy for Phoenix Ventures Capital Ltd investors in the UK, Europe, US and Nigeria

Our risk objectives are to:

• Minimize potential losses
• Maximize returns on investment
• Ensure compliance with relevant UK laws and regulations, including the Financial Conduct Authority (FCA) regulations
• Protect our reputation and brand

We have identified the following risk categories:

• Investment Risk: Risk of loss or underperformance of portfolio companies
• Market Risk: Risk of changes in market conditions affecting portfolio companies
• Liquidity Risk: Risk of inability to exit investments in a timely manner
• Operational Risk: Risk of fraud, cyber attacks, or other operational failures
• Reputation Risk: Risk of damage to our reputation due to investments or actions
• Compliance Risk: Risk of non-compliance with relevant UK laws and regulations, including the FCA regulations

Our risk management process includes:

• Risk Assessment: Evaluating potential risks and opportunities during the investment process
• Due Diligence: Conducting thorough due diligence on potential investments, including but not limited to legal and financial reviews
• Investment Committee: Reviewing and approving investments based on risk and return criteria
• Portfolio Monitoring: Regularly monitoring portfolio companies and adjusting risk management strategies as needed
• Risk Review: Regularly reviewing and updating risk management strategies to ensure effectiveness

We use a variety of risk mitigation strategies, including:

• Diversification: : Spreading investments across multiple industries and stages
• Deal Structuring: Deal Structuring
• Active Portfolio Management: Working closely with portfolio companies to address risks and opportunities
• Exit Strategies: Identifying and pursuing exit opportunities to minimize risk
• Compliance Procedures: Implementing procedures to ensure compliance with relevant UK laws and regulations

We use a variety of risk mitigation strategies, including:

• Investment Team: Responsible for identifying and assessing risks during the investment process
• Investment Committee: Responsible for reviewing and approving investments based on risk and return criteria
• Portfolio Managers: Responsible for monitoring portfolio companies and adjusting risk management strategies as needed
• Exit Strategies: Identifying and pursuing exit opportunities to minimize risk
• Compliance Officer: Responsible for ensuring compliance with relevant UK laws and regulations