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CAUCASUS GROWTH FUND ACQUIRES 40% OF ARMENIA'S NEW FORCE FOR $2 MILLION
YEREVAN, April 3. /ARKA/. On April 3, the USAID-funded Enterprise
Development and Market Competitiveness (EDMC) Project and the Small
Enterprise Assistance Funds (SEAF) Armenia announced the first equity
investment in Armenia made by the SEAF Caucasus Growth Fund. The
investment contract was signed by Managing Principal Partner of SEAF
Caucasus Growth Fund Esben Emborg and Arthur Hovakimyan, Managing
Partner of New Force LLC - a local distribution company in Armenia.
The fund, investing from $500,000 to $5 million in companies, acquires
30 to 40 percent of their equities for five years with a right to
resell them.
The head of the fund said after signing the agreement that during
the next five years the equity investment will be used to enhance
the company's activity in Armenia and to expand to Georgia.
He said the funds attracted by the company will be used for creation
of a Emborg said that NewForce will use the investment to create a
regional distribution platform to export and distribute local and
international products (food and non-food), thereby contributing to
increased sales and income for Armenian companies.
He said that SME in Armenia and in Caucasus is a quite complicated
sector, and existence of Small Enterprise Assistance Funds is Armenia
is a good impetus for large investors.
This is the fund's first portfolio investment in Armenia's small
business. Some 93 companies have applied for the investment in 23012
and 2013. Armenia's SEAF looked through 29 of them, since these
companies met all the requirements of the fund. In particular, they
earned at least $500,000 and up to $15 million every year, and they
had no more than 250 employees each.
Two Georgian companies have received financing from the fund as well.
There is no such a company in Azerbaijan so far.
The fund's investments for Caucasus total $46 million.
The Caucasus Growth Fund is financed by European Bank for
Reconstruction and Development, International Finance Corporation,
Entrepreneurial Development Bank of the Netherlands and the Black
Sea Trade and Development Bank.
The fund was established almost one year ago. It is designed for
investing funds in shareholder capital of small and medium companies
in Caucasus and to lend money to them.
The fund invests money in consumer and business services, agriculture,
energy and retail trade areas. ---0---
YEREVAN, April 3. /ARKA/. On April 3, the USAID-funded Enterprise
Development and Market Competitiveness (EDMC) Project and the Small
Enterprise Assistance Funds (SEAF) Armenia announced the first equity
investment in Armenia made by the SEAF Caucasus Growth Fund. The
investment contract was signed by Managing Principal Partner of SEAF
Caucasus Growth Fund Esben Emborg and Arthur Hovakimyan, Managing
Partner of New Force LLC - a local distribution company in Armenia.
The fund, investing from $500,000 to $5 million in companies, acquires
30 to 40 percent of their equities for five years with a right to
resell them.
The head of the fund said after signing the agreement that during
the next five years the equity investment will be used to enhance
the company's activity in Armenia and to expand to Georgia.
He said the funds attracted by the company will be used for creation
of a Emborg said that NewForce will use the investment to create a
regional distribution platform to export and distribute local and
international products (food and non-food), thereby contributing to
increased sales and income for Armenian companies.
He said that SME in Armenia and in Caucasus is a quite complicated
sector, and existence of Small Enterprise Assistance Funds is Armenia
is a good impetus for large investors.
This is the fund's first portfolio investment in Armenia's small
business. Some 93 companies have applied for the investment in 23012
and 2013. Armenia's SEAF looked through 29 of them, since these
companies met all the requirements of the fund. In particular, they
earned at least $500,000 and up to $15 million every year, and they
had no more than 250 employees each.
Two Georgian companies have received financing from the fund as well.
There is no such a company in Azerbaijan so far.
The fund's investments for Caucasus total $46 million.
The Caucasus Growth Fund is financed by European Bank for
Reconstruction and Development, International Finance Corporation,
Entrepreneurial Development Bank of the Netherlands and the Black
Sea Trade and Development Bank.
The fund was established almost one year ago. It is designed for
investing funds in shareholder capital of small and medium companies
in Caucasus and to lend money to them.
The fund invests money in consumer and business services, agriculture,
energy and retail trade areas. ---0---