What this is Best practices for configuring and maintaining your investor screening rules.
Who this is for Investors who want to optimize their project screening workflow.
What you can do - Set up rules that match your investment criteria - Organize rules by priority and type - Adjust rules based on screening results - Create rule sets for different investment strategies
Rule types explained
Deal-breakers (Hard rules) Projects failing these are automatically rejected: - Minimum Project IRR threshold - Maximum payback period - Country restrictions - Minimum/maximum system size
Warnings (Soft rules) These flag projects for closer attention without automatic rejection: - IRR approaching minimum threshold - Unusual cost structures - Non-standard contract terms
Informational rules Track metrics without pass/fail judgment: - Average tariff rate - Debt-to-equity ratio - Construction timeline
Setting effective thresholds
Be realistic - Set thresholds based on actual portfolio performance - Avoid overly aggressive targets that reject viable projects - Consider market conditions in different geographies
Consider ranges - Rather than single values, think in ranges - "Target IRR 12-15%" vs "Minimum IRR 12%"
Review regularly - Adjust thresholds based on deal flow quality - Update country lists as markets evolve - Refine based on actual investment outcomes
Rule organization tips
Prioritize correctly 1. Hard constraints first (country, size) 2. Financial minimums second (IRR, payback) 3. Soft preferences last (specific technologies, terms)
Use categories - Group rules logically - Makes review and adjustment easier - Helps team members understand criteria
Analyzing rule performance
Track rejection reasons - Which rules reject the most projects? - Are rejections appropriate or is the threshold wrong?
Review near-misses - Projects that barely failed - May indicate threshold refinement needed
Compare to outcomes - Did passed projects perform as expected? - Use feedback to improve rules
Rules and limits - Maximum 50 custom rules per workspace - Rules apply to all projects in the workspace - Changes take effect immediately for new screenings
Common mistakes - Setting thresholds too tight, rejecting viable projects - Not reviewing rules after market changes - Having conflicting rules that confuse outcomes
Related articles - Reading Screening Results - Workspace Roles and Permissions - Audit Trail: What is Logged
--- Tip: Start with conservative rules and tighten them based on deal flow quality rather than setting aggressive thresholds upfront.