1 / 16

Presentation of the Central America Small Enterprise Investment Fund´s experience

Presentation of the Central America Small Enterprise Investment Fund´s experience. Management company. Buenos Aires, Argentine Oct 21 , 2005. Contents. Summary of CASEIF and LIM. Financial results of CASEIF/LIM. Success factors of CASEIF and LIM. 2.

sbray
Download Presentation

Presentation of the Central America Small Enterprise Investment Fund´s experience

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Presentation of the Central America Small Enterprise Investment Fund´s experience Management company Buenos Aires,Argentine Oct 21, 2005

  2. Contents Summary of CASEIF and LIM Financial results of CASEIF/LIM Success factors of CASEIF and LIM 2

  3. Fund Summary • Equity fund incorporated in October 18, 2000 after initiative by MIF and NORFUND. The life of the fund is 10 years. • The shareholders of CASEIF are MIF, NORFUND; NDF and LAFISE. • Covering all 7 countries in Central America, with HQ in Managua, Nicaragua. • Focus on the SME sectors - companies with fewer than 100 employees and less than US$ 3 million in sales/assets, thereby having a stronger development impact with more poverty reduction. • Investment amount per company: US$ 250,000 up to US$ 1.5 million. • The Fund is being managed by Lafise Investment Management, a JV between NORFUND and LAFISE. 3

  4. The LAFISE Group – with presence in 10 countries and more than of 20 years of experience into a successful organization of 1,800 employees 4

  5. The LAFISE Group – a complete portfolio of services and solutions Banking (4 banks in the region) Brokerage services Trading Securities Corporate finance Insurances Commodites Broker/Dealer Warehouse Currency exchange Leasing 5

  6. What represents the Lafise Group for CASEIF/LIM? • Knowlodgement and expertise of the region • Contacts and relations with authorities, multinational companies, financial system • Reference of new deals • Check of references of companies and sponsors • Support from the corporative team lawyers • Facilities of logistic • Help CASEIF´s investees in trading activities, to find clients and suppliers, strategic • alliances. • Reference of potential buyers/investors for the companies in the Portfolio. • Follow up and supervision of the CASEIF’s investees in each country. 6

  7. Break even CASEIF financial results 7

  8. CASEIF financial results • The ROE is 12%. • Stock redemption of US$ 1.8million. It represents that 19% of the investors contribution has been reimbursed to the CASEIF’s shareholders. • Before the expiration of the investment period 2 exits has been done and 2 more are on the way for the end of 2005. With this on hands, a 49% of the of the investors contribution will be reimbursed to the CASEIF’s shareholders. • Given that the investment period is ended, LIM is on position to establish a second fund. 8

  9. LIM financial results 9

  10. Model of deal structure Banking model Private Equity model Hybrid model Convertible debt • It allows: • To generate income (interests) during the grace period • Security for the loan – to recover the funds • Legal rights like a lender • Time for evaluate a conversion • To extend the conversion period if it is required • Time to establish strong relationship with sponsors • A way of early exit • Dividends • 1 share with preferential rights • To have the full upside in the exit 10

  11. Example 1: First exit of CASEIF - Metrored US$ • Lessons learned: • Opportune moment to begin the exit process and • talk about it with sponsors • To make your own valuation of the company and • to discuss it in the Board of Directors • To participates actively in the due diligence and • negotiations meetings • To look for different alternatives 11

  12. Example 2: Colección 2000 Coleccion 2000 average unit price: US$ 1.80 Chinese average unit price: US$ 1.15 12

  13. Example 3: Second exit of CASEIF - Consultel • Contractor of Ericsson for different projects of telecommunications • Contracts of short term and high profitability. • Lessons learned: • Not use money of long term for short term projects • To have an appropiate legal structure focused on the cash control • To request collaterals not related to the company (personnal assets from sponsors) 13

  14. The way to follow up of investees • To establish strong relationship with sponsors since the initial conversations • Coaching/mentoring • To provide value added • To improve the corporate governance • Monthly certification of financial statements • To help in ISO 9000/HACCP certifications • TA Funds – NORAD • Follow up of environmental issues • Follow up of laboral rights To become in a strategic partner 14

  15. S.A. Muebles Where to invest? - CASEIF Portfolio Sep, 05 Commitment capital US$ M Country Sector/activity 1.00 Nicaragua ISP/Carrier 0.50 Nicaragua Fishing/value added products 0.51 Costa Rica Niche of Special plastics products 1.30 El Salvador Tourism 0.95 Honduras Niche of special plastic products 0.80 Honduras Exports of furnitures of high value to USA 0.50 Costa Rica Processing prepared food and canned products 15

  16. Thanks for your time..........

More Related