B.Sun
SEAF (Small Enterprise Assistance Funds) is an international tax-exempt investment organization that sponsors and manages for-profit investment funds that target small businesses in 23 countries, many of them in CEE. Founded in 1989, SEAF currently has $180 million invested in small enterprises in Europe, Latin America and Asia. SEAF provides direct financing ranging between $1 – $5 million, drawn from 23 funds it manages for its investors. Investors in SEAF include the EBRD, International Finance Corporation and U.S. Agency for International Development.
SEAF operates on a commercial basis and requires a rigorous standard of financial capability, corporate governance and visionary leadership. Its investment activities focus specifically on nations with emerging markets and/or markets that have problems securing capital for reasons such as size of investment, location or fragmentation. A list of criteria establishing whether a business qualifies as an investment target can be found at http://www.seaf.com/policies.htm.
SEAF funds are invested through structured equity participations in partnership with local entrepreneurs and senior management. Investments also generally include exit rights due to SEAF’s for-profit nature. Funds can be self-liquidating for certain businesses or used to obtain majority ownership rights in a business. Currently, 85 companies are actively managed by SEAF. While the company does not disclose performance reports to the public, investment performance reports for the totality of SEAF’s funds are available at http://seaf.com/SEAF_glance.htm. SEAF has enjoyed a 1.6x rate of return on its investments in portfolio companies. SEAF has disbursed $131 million and grown the net worth of these companies to $209 million.
SEAF has also published a comprehensive report of SME’s impact on emerging markets and global economies. Volume 1 of the report can be found at http://seaf.com/SEAF%20Dev%20Impact%20Vol%201.pdf. Volume 2 is a compilation of case studies and can be found at http://seaf.com/SEAF%20Dev%20Impact%20Vol%202%20-%20Case%20Studies.pdf. These reports provide excellent insight drawn from SEAF’s 18 years of experience investing and growing SME’s in developing countries.
To apply for funding, contact the appropriate office in your country from http://www.seaf.com/offices.htm.
