Small Enterprise Assistance Funds
Introduction
Small Enterprise Assistance Funds (SEAF) is a global investment firm focused on providing growth capital and operational support to businesses in emerging markets and those underserved by traditional sources of capital. SEAF selectively makes structured debt and equity investments in locally owned enterprises with high growth potential.
Based in Washington D.C., SEAF invests in more than 30 countries around the world through an international network of 18 offices in Central and Eastern Europe, Latin America, and Asia. Investors include a cross section of public and private institutions, including several of the international finance institutions, local pension funds, insurance companies, banks and family offices. [1]
SEAF International Funds
Below is a list of SEAF’s funds and the countries in which they operate:
Global
- SEAF SME Debt Facility
Central and Eastern European Funds [2]
- Caresbac Polska
- Poland
- Baltics Small Equity Fund (Closed)
- Estonia
- Latvia
- Lithuania
- SEAF Macedonia
- Central/Eastern Europe Growth Fund
- SEAF Trans-Balkan Fund
- Bulgaria through the Trans-Balkan Bulgaria Fund
- Romania through the Trans-Balkan Romania Fund (Closed)
- Croatia through the SEAF Croatia
- SEAF South Balkan Fund
- Serbia
- Montenegro
- Macedonia
- Georgia Regional Development Fund
Latin American Funds [3]
- Trans-Andean Fund
- Peru through the Fondo Transandino Peru Fund
- Colombia through the Fondo Transandino Colombia Fund
- Latam Growth Fund
- Latam Peru Fund
Asian Funds [4] [5]
- Central Asia Small Enterprise Fund
- Uzbekistan
- Kazakhstan
- Kyrgyz Republic
- Tajikistan
- Turkmenistan
- Sichuan Small Investment Fund
- China
- SEAF India Investment Growth Fund
- SEAF Blue Waters Growth Fund Limited
- Vietnam
- Cambodia
- Afghan Growth Finance
- Afghanistan
History
In 1989, the year SEAF was founded, new democracies and free market economies were beginning to rise from the ashes of communism and the weight of old oligarchies. Elsewhere in the world, governments in these emerging markets also realized the importance of achieving growth through encouraging the growth of local small and medium enterprises. They looked to the growing private sector to achieve economic growth, reduce poverty, increase prosperity and help achieve political and economic stability. Investors also saw the opportunities represented by these growing enterprises, and were interested in participating.
To address these issues, SEAF was established, initially as a private investment subsidiary of the international development organization CARE. Then called the CARE Small Business Assistance Corporation or CARESBAC, the organization had a focus of providing growth capital coupled with technical assistance to Small and medium enterprises (SMEs). Backed initially by a $300,000 grant from the U.S. Agency for International Development, CARESBAC raised investment sources through a variety of commodity sales, initial grants, and loan commitments that created the resources behind its initial private investment funds located throughout Central and Eastern Europe.
In 1995 the activity of CARESBAC was spun off from CARE, becoming the Small Enterprise Assistance Funds (SEAF). SEAF was formally registered as an independent tax-exempt organization in the State of New York sponsoring and managing for-profit investment funds that target businesses operating in underserved communities.
SEAF is now managing or developing 19 funds, with aggregate capital under management over USD 500 million. From 1992-2009, SEAF made a total of nearly 290 investments, 178 of which it is still currently holding. [6]
Impact on Development
Small and medium enterprises (SMEs) are often overlooked and therefore referred to as the “missing middle” in the developing world. Recent data results, analysis and case highlights (reports can be found below in the “Publications” section) demonstrate how SMEs can generate employment opportunities in their local communities, serve as links to regional and international markets for smaller local suppliers, and address market deficiencies and customer needs that would otherwise go unaddressed. [7] [8]
SEAF and CEED
In 2005, the SEAF family grew larger with the creation of Center for Entrepreneurship and Executive Development (CEED), a legacy institution of United States Agency for International Development (USAID) and SEAF, born out of USAID grant funding in SME equity investments made by SEAF throughout the Balkans, and EBRD in Slovenia. CEED centers provide business development training and technical assistance to entrepreneurs in emerging market. [9] [10]
Leadership
SEAF is led by a Corporate Board of Directors, an International Advisory Council, and a Management Team based in Washington, DC. The board and the council include business leaders, editors of periodicals, academics, and other international experts. Below is a list of senior management at SEAF: [11]
United States Headquarters
- Hubertus van der Vaart, Executive Chairman and Founder
- Richard Sheridan, President and Chief Executive Officer
- Mildred Callear, Executive Vice President and Chief Operating Officer
- Donald Lubreski, Treasurer and Chief Financial Officer
International Offices
- Mustafa Kazem, Afghanistan
- Joke van Hedel, Netherlands, Belgium
- Dani Danailov, Bulgaria
- Donald Nicholson, Uzbekistan
- Jonathan Carr, China
- Hector Cateriano, Colombia
- Senka Bobic, Croatia
- Gary Dodge, Estonia
- Armands Fomicevs, Georgia
- Hemendra Mathur, India
- Nikola Stefanovic, Serbia
- Oliver Kosturanov, Macedonia
- Jose Garcia Herz, Peru
- Piotr Kalaman, Poland
- Keirn O’ Connor, Vietnam
Publications
“From Poverty to Prosperity: Understanding the Impact of Investing in Small and Medium Enterprises” A Data Survey and Case Study Analysis for SEAF Investments
“Defining SMEs: A Less Imperfect Way of Defining Small and Medium Enterprises in Developing Countries” A Brookings Global Economy and Development Report, co-authored by Chairman Hubertus van der Vaart
“The Development Impact of Small and Medium Enterprises: Lessons Learned from SEAF Investments” Volume 1: Main Report
“The Development Impact of Small and Medium Enterprises: Lessons Learned from SEAF Investments” Volume 2: Case Studies
“Social Investors on the Sidelines” Microenterprise Americas Report on SME Investors
External links
Notes and references
- ^ http://www.seaf.com/ SEAF Homepage
- ^ http://serbia-montenegro.usaid.gov/code/navigate.php?Id=78 USAID's Description of SEAF's Work in Serbia and Montenegro
- ^ http://www.peru.com/finanzas/idocs2/2009/2/6/DetalleDocumento_541131.asp Peru.com Report on SEAF's Work in Peru (Spanish)
- ^ http://online.wsj.com/article_email/SB123684535782705929-lMyQjAxMDI5MzI2NzgyNDc1Wj.html Wall Street Journal Report on SEAF's Work in India
- ^ http://www.seaf.com/news/If%20you%20can%20take%20the%20heat,%20invest%20in%20Afghanistan%20%7C%20Reuters.com.pdf Reuters Report on SEAF's Work in Afghanistan
- ^ http://www.seaf.com/our_history.htm SEAF History
- ^ http://www.seaf.com/Economic_Impact_Documents/From%20Poverty%20to%20Prosperity.pdf SEAF Report on Development Impact
- ^ http://www.brookings.edu/papers/2008/09_development_gibson.aspx Brookings Report on SMEs
- ^ http://http://www.ceed-global.org/web/default.aspx CEED Homepage
- ^ http://www.usaid.gov/locations/europe_eurasia/press/success/2006-03-22.html USAID CEED Article
- ^ http://http://www.seaf.com/our_leadership.htm SEAF Leadership