Investment Area
Description
The activities of the Investment Area are focused on structuring financing operations that adjust to the needs of the companies with which it works. Additionally, the IES Foundation contributes to the management of the economic and social performance of these companies, promoting their consolidation and growth.
By strengthening the management of the companies, IES Foundation contributes to the sustainability of the impact, as well as generating the resources to expand its interventions.
Therefore, as a private non-profit institution, in addition to financing its business model, the resources it generates are invested in innovative financial vehicles that entirely satisfy the financing and knowledge needs of these companies.
General Objective
Facilitate access of dynamic companies in Bolivia to the most appropriate financing, enabling them to improve their economic and social performance management in order to achieve sustainability of both the business unit and its impact.
Strategic Objectives
Monitoring and investment management: Consolidate investment in funds and strategic companies to ensure that a greater number of dynamic companies in Bolivia have access to adequate resources to finance their businesses, supporting their economic and social performance management and promoting the sustainability of the company and its impact.
Technical support to investors: Through the mapping of dynamic companies, their evaluation, strategic structuring of financial operations, monitoring of investment and assistance of disinvestment or exit, favor brokering relationships between investors and dynamic companies in Bolivia.
New Proyects
The companies in the IES Foundation portfolio contribute through an inclusive business scheme to the development of low-income communities and families.
Background
The most appropriate way to work with rural producers is to ensure sustainable and permanent access to markets. Hence the need to promote and strengthen the “social entrepreneurs”; small and medium-sized entrepreneurs who have already developed a relationship with the most dynamic markets and, therefore, can be a “gateway” for small producers.
The portfolio of the IES Foundation, in addition to the companies of the Tayka Hotels Network, is made up of companies from the agroindustrial sector that market their production in both the local and international markets. These companies have many suppliers in the rural area, contributing through an inclusive business scheme to the development of low-income communities and families.
On June 30, 2018, the investment portfolio was 5.5 million dollars, invested in eight companies in both fixed income and equity investments.
Objective
Consolidate investment in funds and strategic companies as a mechanism to ensure that a greater number of dynamic companies in Bolivia have access to adequate resources in order to finance their business, supporting the management of their economic and social performance and promoting sustainability. the business unit and its impact.
The IES Model
- Investments in shares of small and medium-sized productive companies.
- Investments in fixed income instruments in the companies of the investment portfolio.
- Implementation of proper Corporate Governance in companies.
- Assistance to employers in the improvement of their administrative processes, taxation, marketing, etc.
Once this process has achieved its objectives, which will be reflected in a significant increase in productivity and competitiveness of the companies, the Foundation resells its stock position whose first purchase option will be in favor of the original owners, obtaining a reasonable profitability due to the company’s growth.
Orbita
Throughout the life of the Fund, the IES Foundation, in addition to being an investor, provides technical advisory services for the identification and evaluation of potential companies, the structuring of operations, the monitoring of the portfolio and the orderly exit of the investments made.
Background
In September 2012, the Closed Investment Fund “PyME Progreso” launched its operations. This Fund was designed taking into account the joint work and vision of IES Foundation and PANAMERICAN Investment Fund Management Company (PANAMERICAN SAFI).
Throughout the life of the Fund, IES Foundation, in addition to being an investor, was appointed as technical advisor of the Fund, responsible for identifying and evaluating potential companies, structuring financial operations, monitoring the performance of the portfolio and the exit. PANAMERICAN SAFI, as the administrator of the Fund, manages the relationships with the investors as well as the assets of the Fund. It also responds directly to the requirements of state regulatory authorities.
Description
PyME Progreso is the first Closed Investment Fund whose purpose is to invest over Bs. 120 MM in fixed income and variable income securities, which are issued by small and medium enterprises (SMEs) in Bolivia.
Objective
Finance and support the development and growth of SMEs through the strengthening of business assets; the establishment and formalization of proper corporate governance practices and transparency policies; technical advice; support for obtaining, in the medium term, financing through the Bolivian stock market; constantly aiming for social impact, while generating profitability for investors.
The “PyME Progreso” Model
1. Company Identification and Evaluation
(2 – 4 Weeks)
- Identification of dynamic SMEs that have a high growth potential in the short or medium term.
- Information request.
- Compliance with formal requirements of the Fund.
- Due Diligence.
2. Risk Rating
(3 – 4 Weeks)
- Securities to be issued must have a Risk Rating delivered by a Risk Rating Entity registered with the regulatory authority.
3. Investment Proposal and final decision
(1 – 2 Weeks)
- The investment proposal is made to an independent Investment Committee.
- The Committee takes the decision to proceed or not with the investment.
- The decision of the Committee is communicated to the company and, if positive, the disbursement is made.
4. Investment Follow-up
(during the term of the issue)
- Regular request for financial, legal and other relevant information.
- Regular participation in the company’s Board or in specific Committees set up to monitor the investment.
Ecosystem
Throughout the life of the Fund, the IES Foundation, in addition to being an investor, provides technical advisory services for the identification and evaluation of potential companies, the structuring of operations, the monitoring of the portfolio and the orderly exit of the investments made.
Background
In September 2012, the Closed Investment Fund “PyME Progreso” launched its operations. This Fund was designed taking into account the joint work and vision of IES Foundation and PANAMERICAN Investment Fund Management Company (PANAMERICAN SAFI).
Throughout the life of the Fund, IES Foundation, in addition to being an investor, was appointed as technical advisor of the Fund, responsible for identifying and evaluating potential companies, structuring financial operations, monitoring the performance of the portfolio and the exit. PANAMERICAN SAFI, as the administrator of the Fund, manages the relationships with the investors as well as the assets of the Fund. It also responds directly to the requirements of state regulatory authorities.
Description
PyME Progreso is the first Closed Investment Fund whose purpose is to invest over Bs. 120 MM in fixed income and variable income securities, which are issued by small and medium enterprises (SMEs) in Bolivia.
Objective
Finance and support the development and growth of SMEs through the strengthening of business assets; the establishment and formalization of proper corporate governance practices and transparency policies; technical advice; support for obtaining, in the medium term, financing through the Bolivian stock market; constantly aiming for social impact, while generating profitability for investors.
The “PyME Progreso” Model
1. Company Identification and Evaluation
(2 – 4 Weeks)
- Identification of dynamic SMEs that have a high growth potential in the short or medium term.
- Information request.
- Compliance with formal requirements of the Fund.
- Due Diligence.
2. Risk Rating
(3 – 4 Weeks)
- Securities to be issued must have a Risk Rating delivered by a Risk Rating Entity registered with the regulatory authority.
3. Investment Proposal and final decision
(1 – 2 Weeks)
- The investment proposal is made to an independent Investment Committee.
- The Committee takes the decision to proceed or not with the investment.
- The decision of the Committee is communicated to the company and, if positive, the disbursement is made.
4. Investment Follow-up
(during the term of the issue)
- Regular request for financial, legal and other relevant information.
- Regular participation in the company’s Board or in specific Committees set up to monitor the investment.
Long Term Sustainability
Throughout the life of the Fund, the IES Foundation, in addition to being an investor, provides technical advisory services for the identification and evaluation of potential companies, the structuring of operations, the monitoring of the portfolio and the orderly exit of the investments made.
Background
In September 2012, the Closed Investment Fund “PyME Progreso” launched its operations. This Fund was designed taking into account the joint work and vision of IES Foundation and PANAMERICAN Investment Fund Management Company (PANAMERICAN SAFI).
Throughout the life of the Fund, IES Foundation, in addition to being an investor, was appointed as technical advisor of the Fund, responsible for identifying and evaluating potential companies, structuring financial operations, monitoring the performance of the portfolio and the exit. PANAMERICAN SAFI, as the administrator of the Fund, manages the relationships with the investors as well as the assets of the Fund. It also responds directly to the requirements of state regulatory authorities.
Description
PyME Progreso is the first Closed Investment Fund whose purpose is to invest over Bs. 120 MM in fixed income and variable income securities, which are issued by small and medium enterprises (SMEs) in Bolivia.
Objective
Finance and support the development and growth of SMEs through the strengthening of business assets; the establishment and formalization of proper corporate governance practices and transparency policies; technical advice; support for obtaining, in the medium term, financing through the Bolivian stock market; constantly aiming for social impact, while generating profitability for investors.
The “PyME Progreso” Model
1. Company Identification and Evaluation
(2 – 4 Weeks)
- Identification of dynamic SMEs that have a high growth potential in the short or medium term.
- Information request.
- Compliance with formal requirements of the Fund.
- Due Diligence.
2. Risk Rating
(3 – 4 Weeks)
- Securities to be issued must have a Risk Rating delivered by a Risk Rating Entity registered with the regulatory authority.
3. Investment Proposal and final decision
(1 – 2 Weeks)
- The investment proposal is made to an independent Investment Committee.
- The Committee takes the decision to proceed or not with the investment.
- The decision of the Committee is communicated to the company and, if positive, the disbursement is made.
4. Investment Follow-up
(during the term of the issue)
- Regular request for financial, legal and other relevant information.
- Regular participation in the company’s Board or in specific Committees set up to monitor the investment.
Target Group
Small and Medium Enterprises in Bolivia that meet the main criteria:
Be an “A. S.” or, “L.L.C.” or “Unipersonal” willing to become “A.S.”
Have a minimum of two years of existence.
Have minimum annual sales of US$ 1,500,000.
Need of financing between US$ 500,000 and US$ 2,000,000.
Results
- Throughout the life of the Fund, a total of Bs 161.6 MM have been invested in 10 companies.
- First Fund in Bolivia to issue preferred shares in the market.
- Successfully accompanied a company in making a public issue in the Bolivian Stock Exchange.
