• The SME Equity Fund Ltd (SEF) is geared towards accompanying and supporting entrepreneurs by financing their projects and expansions.

    This scheme provides several interesting features for SMEs. The period of repayment is seven years and there is no early repayment fee. However, it is important to note that the SEF may appoint its representative on the investee company board.

    There are four key steps in order to benefit from the SEF. All applicants are first required to fill an application form and to write their project. At this stage, it is essential to determine the feasibility and cost effectiveness of the project. Once this step completed, the applicants are invited to submit their form and project to the investment committee and Board for Approval. If the project is approved, the SEF disburse the funds. The final step consists of the monitoring of the project.

     

    Features:

    – Period of repayment: up to 7 years.

    – No early repayment fee policy.

    – SEF may appoint its representative on the investee company board.

    Exit structure:

    – Company buys back/redeems SEF shares

    – Existing shareholder buys back / redeems SEF shares

    – Sale of SEF shares to a third

    Corporate Services offered

    – Preparation of constitution

    – Directors and shareholders resolution

    – Restructuring of share capital

    – Allotment of shares

    – Shareholders meeting facilities

    Investment Process

    Step 1 – Application form and project appraisal

    Step 2 – Submission to Investment Committee and Board for Approval

    Step 3 – Agreement of project and disbursement

    Step 4 – Monitoring of Project

    Eligibility to apply

    • Entrepreneurs’ investment equal at least 51% of company total equity.
    • Only viable and sustainable projects be considered.
    • Promoters must be Mauritian Nationals
    • SEF investments ranges from Rs500K to Rs25M
    • SEF will not invest in real estate, trading, gambling and working capital needs.

    Am I better off with a Loan or an equity investor?

    Criteria Business Loan Equity Fund
    Debt to Equity Ratio A Limit is applicable Equity Financing improves the ratio.
    Repayment

     

    Immediate repayment Flexible repayment
    Guarantee

     

    Guarantee mandatory Flexible Guarantee
    Risk Risk mitigated by guarantee

     

    Risk shared even if debts repayment capacity is reached

     

    Decisions Take any actions and decisions Limited by governance in investment agreement

     

    Shareholding Remain the only shareholder Shareholding diluted.