Contents
Corporate Finance
1.
Background and Introduction
2.
What is Private Equity?
3.
Objectives of NRF Equity Investment Limited
4.
BDO (“The Manager”)
5.
Eligibility
6.
Exclusions
7.
Application Process
8.
The Process
9.
Our Promise
10.
Contact us
1. Background and Introduction
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Corporate Finance
What are the challenges facing SMEs in Mauritius today?
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Lack of visibility caused by external events;
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Trade liberalisation;
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High operating and financing costs;
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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
2. What is Private Equity?
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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,
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Corporate Finance
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.
3. Objectives of NRF Equity Investment Limited
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The Fund has been set up by the Government of Mauritius together with
leading commercial banks.
Objectives
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Provide risk capital (i.e. Equity) to entrepreneurial and growth potential SMEs
with a proven track record;
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Assist targeted enterprises in building value through expansion and strategic
management support;
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Acquire only a minority equity stake (≤49%);
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Provide a minimum investment of Rs 10m and a maximum of Rs 50m.
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Exit within 5 to 7 years
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4. BDO & Co
(“The Manager”)
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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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5. Eligibility
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All industry sectors will focus on manufacturing, agro business, services
and ICT;
Well established small or medium sized enterprise incorporated in
Mauritius;
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Minimum 3 years proven track record;
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Minimum turnover of Rs 10m;
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Looking to expand, to upgrade or move up the value chain;
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Good fundamentals;
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Pro-active management, willing to consider independent and external
advice and implement changes to improve productivity and efficiency.
Corporate Finance
6. Exclusions
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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
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Real Estate and property development;
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Trading, i.e. with no value added creation;
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Gambling.
Corporate Finance
7. Application Process
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In order to process your application, we will require:
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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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8. The Process
1.
2.
3.
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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
9. Our Promise
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We shall provide:
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Efficient and accurate consideration of your application;
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Clear communication throughout the investment process;
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A deal structure that reflects the fundamentals and the business
risks;
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An assurance of confidentiality.
10. Contact us
NRF Equity Investment
BD0 & Co.
10, Frere Felix de Valois Street
Port-Louis
Mauritius
Tel: 202 9613
Email : info@nrf.mu
BDO & Co.
10, Frere Felix de Valois Street
Port-Louis
Mauritius
Tel: 202 9613
Corporate Finance
Corporate Finance