ENTERPRISE DEVELOPMENT FUND Information Pack May 2013 Fund Overview: June 2013.
Post on 28-Dec-2015
217 Views
Preview:
Transcript
ENTERPRISE DEVELOPMENT FUND
Information PackMay 2013
Fund Overview: June 2013 Fund Overview: June 2013
2
The ASISA Enterprise Development Fund provides an optimal solution to Enterprise Development for an industry responsible for R4.64 trillion in savings and investments.
Introduction
The objective of the ASISA Enterprise Development Fund is to create sustainable value for all stakeholders through the growth and development of small and medium sized enterprises with a specific focus on enterprise development and supplier development.
“Initiatives like these prove our industry is serious about making a difference in this country, not just where profits are to be made, but also in non-traditional areas where the only gain is the long-term development and strengthening of the social-economic fabric of our country.” Johan Van Zyl.
ASISA ChairmanGroup CEO Sanlam
What is the ASISA ED Fund?
3
1Invest in the
growth of SMEs to create
maximum shared value
for investors, investees
and society
1Invest in the
growth of SMEs to create
maximum shared value
for investors, investees
and society
2Create
financial and brand
benefit for investors
and industry by
delivering high impact ED success
stories.
2Create
financial and brand
benefit for investors
and industry by
delivering high impact ED success
stories.
3Ensure the growth and sustainabilit
y of investees by
providing best
practice business
development support.
3Ensure the growth and sustainabilit
y of investees by
providing best
practice business
development support.
4Provide an
optimal BEE compliance solution for investors
that marries the spirit
and intent of the code.
4Provide an
optimal BEE compliance solution for investors
that marries the spirit
and intent of the code.
5Align to
industry and government
priorities with regard to leading practice
Enterprise Developmen
t.
5Align to
industry and government
priorities with regard to leading practice
Enterprise Developmen
t.
The ASISA ED Fund creates sustainable shared value for South Africa and its Funders by managing an industry leading Enterprise Development Fund that invests in the growth and development of Small and Medium sized Enterprises with a specific focus on
Enterprise Development, Supplier Development and Business Development Support.
2.2.
3.3.
1.1.
4
Funding is received from investors in the form of an Investment, Grant or Loan and ED points are received immediately. Loans qualify for repayment following the loan term and Investments qualify for fund ownership, capital preservation and ROI.
The investment management process is based on industry best practice and is supported by an experienced Fund Management Team. Investments are identified and screened against the fund mandate before undergoing thorough feasibility, due diligence and professional Investment Committee approval.
Ongoing post-investment business development support (BDS incubation) is provided to the investee enterprises by the Fund Manager to unlock value and maximise the growth, profitability and job creation capacity of the investee enterprise.
How does it work?
How is the Fund Structured?
6
Small & Medium Enterprises (Investees)
Small & Medium Enterprises (Investees)
Black Ownership
51%Black Ownership
51%Investors
49%Investors
49%
FUND MANAGERFUND MANAGER
ASISA ED FUNDASISA ED FUNDINVESTORS
INVESTORS
Board of TrusteesBoard of Trustees
Investment Committee
Investment Committee Fund AdministratorFund Administrator
Capital
BEE PointsBEE Points
Enterprise Development
ED PortfolioED Portfolio
BDS Incubation
Investees are provided
with the uniquely
tailored financial and
business development
support they require to
grow.
Capital ReturnsCapital Returns
7
Detailed Benefits
1. The fund qualifies as an Enterprise Development investment in terms of the BEE Codes, thereby allowing companies in South Africa to secure their Enterprise Development points immediately on deposit.
2. The fund is a Category A Enterprise Development Beneficiary with a benefit factor multiple of up to 1. 5, thus every Rand spent can be multiplied by 1.5 when establishing ED points for the BEE Codes. Investors and Lenders retain their ED points year on year until the point at which their funds are returned.
3. Investors qualify for ownership of the Fund as well as ROI (Return on Investment) on the Fund’s performance. Lenders qualify for preservation of their loan capital, and all contributors are able to utilise the investments of the Fund for public relations, marketing and reputational benefit.
4. The fund is managed by a professional, independent and experienced Fund Management team, so Funders are not required to pay fees nor dedicate their own human resources.
5. The investment process and methodology is based on best practice and supported by an experienced and qualified team.
6. High ethical and governance standards which include: credible management team and professional reporting. Detailed annual reports will be prepared for all funders.
7. The Fund Manager provides post-investment, Business Development Support (BDS) to Investee companies to enhance the growth of investments and reduce the risk of business failure. BDS may be provided in conjunction with the ASISA Academy and Members as per the Investee’s needs.
8. ASISA’s industry wide supplier database will be used as a primary source for targeting suppliers for supplier development and investments for enterprise development.
What do we invest in?
8The ASISA ED Fund aims to invest in enterprises with highly differentiated competitive advantage / strategic fundamentals and / or industry supply chain alignment.
The ASISA ED Fund aims to invest in enterprises with highly differentiated competitive advantage / strategic fundamentals and / or industry supply chain alignment.
Our Service Offering:
The ASISA Enterprise Development Fund invests in enterprises which, with the right assistance, hold the potential to create far reaching impact. We seek to find high potential businesses with the required skills and experience to succeed. We invest capital and we complement management with specialist expertise to unlock growth .
Our intensive due diligence process identifies sound investments by assessing the businesses team, market, economics, and customer value proposition and selecting only those businesses for investment which have the ability to become commercially sustainable. The ASISA ED Fund will then provide the enterprise with tailored business development support to assist the growth of the business and resultant social impact.
We seek to find high potential businesses with the required skills and experience to succeed.
Illustrative Investment
9
Criteria Description
Funding Requirement R2,000,000
Turnover R2,000,000 p/a
Stage of business Early Growth phase
Geography Johannesburg
Supply Chain Alignment Medium
Strategic Fundamentals High
Growth potential High
Social Impact High: Job Creation & Enviro
BEE Level 3 Contributor
Forecast Return 20% IRR
Winner of the London round of the Global social venture capital competition, Reel Gardening’s unique product range promises impact from job creation through to food security and water
preservation.
Winner of the London round of the Global social venture capital competition, Reel Gardening’s unique product range promises impact from job creation through to food security and water
preservation.
Business Development Projects
11
Program ManagementProgram Management
Initiation & Strategic Alignment
Initiation & Strategic Alignment
Broker Assessment &
Selection
Broker Assessment &
Selection
Business Development SupportBusiness Development Support
Monitoring, Tracking & ReportingMonitoring, Tracking & Reporting
Measurement & Evaluation
Measurement & Evaluation
Enterprise & Supplier Development Programs
Governance Structure
12
The ASISA ED Fund is governed by an experienced Board of Trustees, professional Investment Committee and specialist Fund Manager in order to ensure:
•Optimal alignment to BEE Codes and Sector Charters;
•High ethical standards, audit and governance methodologies;
•Leveraged partnerships with industry members and other financial institutions;
•Professional Fund Administration and reporting standards including detailed quarterly and annual reports;
•Experienced ED Fund Management and Business Development Support
•Representation from Industry, Government, Investors, and the ASISA Foundation as primary beneficiary set up as a B-BOS in terms of the FSC.
The Board of the ASISA ED Fund represents leadership from Industry, Government and ASISA to provide strategic, legal, financial & operational
governance to the Fund
The Board of the ASISA ED Fund represents leadership from Industry, Government and ASISA to provide strategic, legal, financial & operational
governance to the Fund
top related