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Due Diligence

At Petra Capital Management, we use a private equity approach to public market investing. We will purchase shares of a company only after we have formulated a solid opinion of its intrinsic value and only if the purchase price is below that value. We perform our own due diligence on our portfolio companies. By utilizing an integrated approach with deep operating and transaction experience, our team uses a focused and tailored approach to identify and understand potential risk factors, value drivers and other areas of specific interest to our investment decisions. We perform hundreds of hours of research on a company before we become owners, including:

  • Contact company management, competitors, vendors, and customers
  • Thorough study of a company’s financial and written history
  • Financial modeling

After conducting thorough due diligence, we appraise a company’s intrinsic value. We consider initiating a position if and when the market price guarantees substantial margin of safety and the price-to-value relationship offers an expected return greater than 15%. We also constantly monitor our portfolio companies to make adjustments to our appraisals.