PF funds private investors with the following conditions:
- PF has a mandate to invest only in Georgia in any industry excluding services sector
- PF invests only in commercially viable projects
- PF is authorized to provide equity financing and also subordinated/senior loan (both convertible and non-convertible)
- Maximum amount of funds (both debt and equity) that PF is able to invest in the project should not exceed private investor’s equity investment
- PF’s objective is to remain mid to long term minority shareholder of the project. Once the project becomes sustainable, PF can exercise its exit option
- The partner should possess financial resources in form of equity to co-fund proposed investment project
- Proposed investment project should be backed by feasibility study (Market Study)
- PF participation should not exceed 50% of the total investment
- The project should allow for exit of PF in 3-7 years from investment
Investment project can be initiated by an investor or the Partnership Fund itself.
Private investor has a project and seeks to attract financing
When private investor is looking to attract capital from PF, the investment project goes through careful three-stage due diligence process:
- Partner/Investor provides project documentation (project presentation, business plan, market Study, etc.) which is evaluated by the PF’s investment officers
- If the project meets PF’s requirements, it is submitted to the Investment Board which undertakes further analysis of the investment project and submits its recommendations to the Supervisory Board
- Finally project needs to be approved by the supervisory board
PF identifies investment opportunity and approaches private investors to participate in the project.
The project goes through three-stage study process:
- The project is initiated by PF – Preparation of an investment project, including technical and financial feasibility studies. This stage may also involve outsourcing to consulting firms;
- Structuring and approval of the project based on the analysis carried out at an initial stage;
- PF attracts private investors for partnership and implementation.