SEAF Bangladesh Ventures LLC

United States of America

Last updated 13 May 2020, by Impactyield.

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In June 2010, SEAF launched a new commercial finance company to invest in small and medium enterprises (SMEs) in Bangladesh. SEAF Bangladesh Ventures (SEAF BV) will provide SMEs with structured capital and quasi-equity investments. This is the first finance company to focus exclusively on providing growth and working capital to promising companies of this size in Bangladesh. SEAF BV was conceived through the International Finance Corporation’s (IFC) SME Ventures Program – an initiative designed to support risk capital financing to SMEs in underserved emerging markets. SEAF BV focuses on key sectors in Bangladesh that represent strong growth opportunities but lack access to traditional sources of finance. SEAF BV provides long-term investments with a double bottom line mission: to promote socially responsible economic development in Bangladesh while generating a competitive return on investment.

SEAF BV will invest in SMEs primarily through unsecured, high-yielding instruments with cash-pay components and equity participation. The company will also offer strategic advisory and business support services to investees in order to facilitate growth.



Financial description

SEAF Bangladesh Ventures will primarily make "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.
SEAF BV may make strategic equity investments in those portfolio companies that show the greatest potential for expansion and growth.

13 years

of track record

2010

the year funded

25,000,000 USD

AUM

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

Key performance indicators

Fund overview

Asset manager: SEAF

Product track record: Fund has 13 years of track record

Target IRR: 10%

Committed Capital: 12,000,000 USD (US Dollar)

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

Fund domicile:

Product status:

Style/Stage: , ,

Inception year: 2010

Vintage year: 2010

Target region: , , ,

Target close date: n.a.

Product term: open-ended

Assets under management: 25,000,000 USD (US Dollar)

Investment size: Min: 100,000; Max: 500,000; Avg: 300,000

Co-investment policy: ,

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 2

Fund investments to date exited or repaid: 0

Management fee: 3.99%

Carried interest: 30%

Hurdle rate: no hurdle - permanent capital vehicle%

GIIN Investors' Council Investment: No

Limited Partners / Investors: International Finance Corporation, SEAF

Limited Partner / Investor Type: Development Finance Institution (DFI), Family Office, Pension Funds, Other Institutional Investors

Contact

E-mail: contactus@seaf.com

Website: http://www.seaf.com

Phone number: 1-202-737-8463

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Fahim Ahmed

Managing Director

Impact Performance

n.a.

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

n.a.

Financial benchmark

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