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Summary of Proposed Investment
This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.
Private Equity/Venture Cap Fund - Regional
Date SPI disclosed
September 26, 2011
Projected board date
October 31, 2011
Invested: August 10, 2012
Signed: March 30, 2012
Approved: February 29, 2012
Leopard Haiti Fund, LP (the “Fund”) is a ten-year Cayman Islands based private equity fund established to help recapitalize the Haitian private sector following the January 2010 earthquake. The Fund will make investments in small and medium enterprises (SMEs), targeting priority sectors such as affordable housing, renewable energy, food production, and tourism, while opportunistically considering investments in other basic sectors. The Fund aims to raise $75 million primarily from IFIs, foundations, impact investors and high net worth individual investors. A related $3 to $5 million Technical Assistance facility will be sought from donors to promote capacity development within potential target companies.
Project sponsor and major shareholders of project company
The General Partner of the Fund is Leopard Haiti Partners, L.P., and the Investment Manager is Leopard Capital Haiti Ltd. Both are Cayman Islands based affiliates of Leopard Capital L.P. (“Leopard Capital”), a Caymans-based investment management group founded in 2007. A subsidiary, Leopard Capital (Hong Kong) Ltd. is licensed by the Hong Kong Securities and Futures Commission for Advising on Securities and for Asset Management activities.
Leopard Capital was established in 2007 to invest in the world’s least developed countries, and to develop and replicate successful business models across them. In 2008 Leopard Capital launched the first private equity fund for Cambodia, which has since made ten investments. It is now preparing a $75 million follow-on fund for Cambodia and Laos and a $100 million fund for Bangladesh. Each fund will be managed by a separate, dedicated on-site investment team. Leopard Capital’s Global Support team of experienced investment professionals and operations staff provides oversight and assistance to all country teams and promotes cross-border knowledge transfer across teams.
The investment team managing Leopard Haiti Fund LP will combine local operational experience and deal sourcing capabilities with international financial expertise. Most or all of team will be based in Haiti and the team will include resident Haitians, members of the Haitian Diaspora, and long term expatriate residents. The investment team will be supported and guided by (1) Leopard Capital’s Global Support team; (2) a Technical Advisory Council (with industry experts); and (3) a Limited Partner Advisory Board representing strategic investors and IFIs.
Total project cost and amount and nature of IFC's investment
The Fund is seeking to raise $75 million of committed capital from investors. It is proposed that IFC make an equity investment of up to $10 million, not to exceed 20% of total fund commitments.
IFC investment as approved by Board
10 million (USD)
IFC Investment (million USD)
* These investment figures are indicative
Location of project and description of site
The Fund Manager’s investment team will be based in Port-au-Prince, Haiti. The Fund will invest in businesses whose primary operations are in Haiti, with the exception that up to 25% of the Fund may be invested in companies operating in the Dominican Republic that have a significant link to Haiti.
Anticipated development impact of the project
The Fund is expected to deliver strong development impact through: (i) supporting undercapitalized SMEs in Haiti with funding, managerial guidance and technical assistance; (ii) demonstrating successful private equity investing in Haiti, a priority IDA country, (iii) building confidence amongst institutional investors to invest in Haiti; and (iv) mobilizing co-investment from strategic international investors. Private equity-sponsored companies often adopt management practices in financial control, cost accounting, quality control, corporate governance, formalized legal structure and tax reporting that are better than those used by their peers. If the Fund is successful and delivers developmental and financially positive returns for its investors, the investment manager may be able to launch successor funds. Examples of successful and well run private enterprises will contribute to a vibrant and sustainable private sector, improving employment, trade balance and public finances in Haiti.
IFC's expected development contribution
IFC will: 1) invest up to $ 10 million in equity financing; 2) negotiate co-investment rights; 3) provide/send signal of approval to potential investors that are undecided about investing in Haiti and with a first-time fund; 4) help improve the Fund structure with terms and conditions that are investor-friendly; 5) negotiate that the Fund follow best practices in corporate governance; 6) help the Fund develop a robust Social & Environmental Management System (SEMS) as part of the Fund's environmental and social (E&S) operations and compliance requirements; and 7) share resources and knowledge for capacity building of the fund manager. IFC's and other IFI's support is central for a successful fundraising, and IFC's early involvement in the Fund has already encouraged other IFIs and impact investors to perform due diligence on this first-time fund manager. The Fund will indirectly contribute to the financial sector of Haiti by linking portfolio companies with co-investors, banks and credit-guarantee agencies outside of Haiti. This is the first private equity fund with institutional investor quality that is raised for Haiti. The success of the Fund, evidenced by well-run private enterprises, will send a signal to other entrepreneurs and investors.
Environmental and social issues - Category FI
The project involves an IFC investment in a Private Equity fund that will target investments in SMEs in Haiti, and up to 25% in companies located in the Dominican Republic that have an interest in Haiti, and has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal IFC will assess the potential Environmental and Social (“E&S”) risks associated with the Fund's expected portfolio, and sectors of investment, which may include tourism, food processing, renewable energy, housing and agribusiness, some of which can potentially have high E&S risks. IFC will also review the Fund Manager's capacity to manage such E&S risks and to establish and maintain an Environmental and Social Management System (“ESMS”). Sub-projects financed by the Fund will need to comply with IFC’s Financial Intermediaries Exclusion List, the applicable host country E&S laws and regulations, and the IFC Performance Standards (the Applicable Performance Requirements). The Fund Manager will be required to develop or upgrade an ESMS, prior to commitment and to the satisfaction of IFC, and implement the ESMS to ensure that the Fund's investments are in compliance with the Applicable Performance Requirements and submit a periodic report to IFC. IFC will review the implementation and performance of the Fund's ESMS for the first few sub-projects and all Category A projects, if any, prior to the Fund's investment, to ensure the ESMS adequacy and to asses and manage E&S risks.
For inquiries about the project, contact:
Douglas W. Clayton
Leopard Capital LP
c/o Maples Corporate Services Ltd.
P.O. Box 309, Ugland House, Cayman Islands
For inquiries and comments about IFC, contact:
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
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