2. Contents Background and Introduction What is Private Equity?
Objectives of NRF Equity Investment Limited
BDO (“The Manager”)
Eligibility
Exclusions
Application Process
The Process
Our Promise
Contact us
Corporate Finance

3. 1. Background and Introduction
What are the challenges facing SMEs in Mauritius today?
Lack of visibility caused by external events;
Trade liberalisation;
High operating and financing costs;
Access to new markets.
Entrepreneurs do not necessarily have the capabilities to scale up their growing organisations
SMEs are also highly geared and face growth constraints
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4. 2. What is Private Equity?
Private Equity provides an alternative source of finance to entrepreneurial companies by investing directly in the equity capital. Traditionally the investors will have significant influence (between a 25% and 49% share);
The fund will hold these shares, work with existing management to increase their value, and then sell them, typically after three to seven years.
Advantages for the enterprise include,
Close involvement of a manager;
Access to specialised skills, knowledge and contacts;
Advice and experienced input for all significant board decisions;
Long-term investment horizons ensure aligned goals;
Shared risk in expansion;
An increased focus on strategic direction and implementation.
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5. 3. Objectives of NRF Equity Investment Limited
The Fund has been set up by the Government of Mauritius together with leading commercial banks.
Objectives
Provide risk capital (i.e. Equity) to entrepreneurial and growth potential SMEs with a proven track record;
Assist targeted enterprises in building value through expansion and strategic management support;
Acquire only a minority equity stake (≤49%);
Provide a minimum investment of Rs 10m and a maximum of Rs 50m.
Exit within 5 to 7 years
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6. 4. BDO & Co (“The Manager”)
Has experience in assisting and advising enterprises, especially in
Turnarounds;
Enhancing operational performance;
Supporting entrepreneurs;
Understands the business imperatives of various industries in Mauritius (agro, textile, light manufacturing, hotel/ leisure, telecoms etc).
Will endeavour to
Be actively involved (but not in the day to day running);
Create value through operational improvements;
Build trust and a functional partnership;
Strengthen the hands of the entrepreneurs.
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7. 5. Eligibility
All industry sectors will focus on manufacturing, agro business, services and ICT;
Well established small or medium sized enterprise incorporated in Mauritius;
Minimum 3 years proven track record;
Minimum turnover of Rs 10m;
Looking to expand, to upgrade or move up the value chain;
Good fundamentals;
Pro-active management, willing to consider independent and external advice and implement changes to improve productivity and efficiency.
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8. 6. Exclusions
Certain business types, due to their nature or risk exposure are unlikely to secure funding from the NRF Equity Investment Ltd e.g. start ups.
These include, but are not limited to
Real Estate and property development;
Trading, i.e. with no value added creation;
Gambling.
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9. 7. Application Process
In order to process your application, we will require:
A completed application form, containing information concerning
Funding requirements;
Entrepreneur’s profile;
Track record, including audited financial statements;
Management team;
Business plan/ Growth plan/ Financial plan.
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10. 8. The Process Perform initial diagnostic and risk assessment
Negotiation Phase
-Deal Structure
-Due Diligence
-Offer Letter
Completion Phase
-Final term sheet
-Board approval
-Signing of shareholders agreement
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11. 9. Our Promise We shall provide:
Efficient and accurate consideration of your application;
Clear communication throughout the investment process;
A deal structure that reflects the fundamentals and the business risks;
An assurance of confidentiality.
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12. 10. Contact us NRF Equity Investment BDO & Co. BD0 & Co.
10, Frere Felix de Valois Street
Port-Louis
Mauritius
Tel:
BDO & Co.
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13. Corporate Finance