The Fund aims to invest between $1 million to $5 million in each investment. The investments would be made in tranches over the life to the portfolio company at various inflection points that will help it drive growth and expansion. This investment approach is necessary as it is very difficult for businesses to find growth or expansion capital in our target markets.
Each tranche of funding would be subjected to an Investment Committee approval to ensure alignment with the Fund investment objectives and the business plan of the portfolio company.
In addition to existing businesses, the Fund would also be making a few investments in “greenfield” new ventures. The Fund would make direct equity investments in portfolio companies and aim to have controlling stake that can be weaned back to the management and entrepreneurs once the business hits certain milestones. The equity investments would be in the form of common shares and convertible preferred shares with certain investor rights. In growth capital investment opportunities that are in line with the Fund investment strategy, the Fund would consider convertible debt and other loan instruments with equity or revenue kickers.