Georgia Regional Development Fund LLC

United States of America

Last updated 13 May 2020, by Impactyield.

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In 2006, SEAF launched the Georgia Regional Development Fund (GRDF) to invest in growing and dynamic SMEs in the Republic of Georgia. In particular, GRDF focuses on businesses outside the capital of Tbilisi and those operating in tourism and agribusiness.

Millennium Challenge Georgia (MCG), a Georgian government agency sponsored by the US Government’s Millennium Challenge Corporation (MCC), established GRDF to promote transparent private sector development in Georgia as the county makes significant progress instituting democracy and market reforms.

Since the Fund's launch, SEAF’s local team in Georgia has partnered with strong local entrepreneurs engaged in a variety of industries to promote domestic growth and economic independence and stability. While Georgia has faced various political and economic challenges during SEAF’s tenure in the country, the Fund has engaged the power of ambitious entrepreneurs who, with GRDF’s risk capital investments and business partnering, have achieved growth for their companies, sustainable employment for Georgian citizens, and other positive impacts on the Georgian economy.

Interested investors should view the SEAF Caucasus Growth Fund.

Financial description

GRDF makes "mezzanine" investments, which are investments that combine features of equity and debt, including participatory loans, preferred equity, and other financial instruments.
SEAF strongly believes that by employing a combination of debt and equity features with appropriate exit mechanisms, a mezzanine investment approach can provide consistent portfolio returns and enhanced investor controls while retaining the potential for significant capital appreciation.

17 years

of track record


the year funded

30,000,000 USD


SDG goals

SDG targets

Equal rights to ownership basic services technology and economic resources

Promote policies to support job creation and growing enterprises

Full employment and decent work with equal pay

Increase access to financial services and markets

Impact Category

Key performance indicators

Fund overview

Asset manager: SEAF

Product track record: Fund has 17 years of track record

Target IRR: 10%

Committed Capital: 30,000,000 USD (US Dollar)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage: ,

Inception year: 2006

Vintage year: 2006

Target region: , , ,

Target close date: n.a.

Product term: 10 years

Assets under management: 30,000,000 USD (US Dollar)

Investment size: Min: 500,000; Max: 3,000,000; Avg: 2,000,000

Co-investment policy:

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 10

Fund investments to date exited or repaid: 0

Management fee: 3%

Carried interest: 20%

Hurdle rate: 0.00%%

GIIN Investors' Council Investment: No

Limited Partners / Investors: Millennium Challenge Georgia Fund

Limited Partner / Investor Type: Development Finance Institution (DFI)




Phone number: +1 (202) 737-8463

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Impact Performance


Impact thesis

SEAF tracks the developmental impacts of its investments in SMEs in emerging markets. Through its experience, SEAF has learned that fostering profitable, competitive local enterprises is a fundamental step in achieving sustainable development. Its partnerships with SMEs generate measureable results, increasing employment and wages for workers, creating business opportunities for local suppliers, and improving the quality and availability of products and services for the local community. Through case studies and data collection, SEAF calculates unique metrics on its investments across its portfolio.
SEAF’s analysis shows that for every $1 invested in an SME, an additional $12 in benefits returns to the community through a variety of stakeholders—from employees, suppliers, customers and competitors, to local governments and communities. As these businesses modernize and grow stronger, so do local families and communities. With the stable jobs, growing incomes, and valuable job training provided by SMEs, families can plan for their futures – investing in housing, health care, and education that can end the cycle of poverty and build the foundation for a more prosperous society.

Impact Management


Financial benchmark

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