British International Investment

SEAF Caribbean SME Growth Fund

CaribbeanGuyanaJamaicaTrinidad and TobagoRest of the WorldConsumer - other servicesFinancial servicesFood & AgricultureInfrastructureManufacturing

The SEAF Caribbean SME Growth Fund is a generalist fund that invests growth capital in small and medium-sized enterprises throughout the English-speaking countries of the Caribbean Common Market (CARICOM).

Our investment

Description of the investment.

This is an investment into SEAF Caribbean Management's inaugural fund in the Caribbean region and our first investment in this region under our 2022-2026 strategy. The generalist SME fund will invest majority and significant minority stakes in SMEs, primarily in the English-speaking Caribbean Common Market region, with the aim of promoting job creation.

Impact information

Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.

What?

Impact

Promote income generating opportunities through job creation (SDG 8.5).

How?

How?

The fund will invest in 8-10 high-growth and profitable SMEs with a sector-agnostic focus. We expect the fund to identify investment opportunities with high potential to create and maintain jobs in the CARICOM region.

Who?

Stakeholder Geography Characteristics
Employees

English-speaking Caribbean Community (CARICOM)

Variable due to the fund's sector agnostic approach. Example: For portfolio company, CAMEX Restaurants, the majority are low-skilled workers; over 85 per cent are women; over 50 per cent are part-time workers, over 55 per cent are 30 to 35 years old.

How much?

Scale Depth/Duration

We expect the fund to help create more than 1,000 jobs in the region.

Impact is expected to be transformational for low-skilled workers who are experiencing higher unemployment rates and increased vulnerability due to macroeconomic instability.

Contribution/additionality

Contribution/additionality
  • Financial additionality: We invested to enable the fund to get closer to its targeted size.
  • Value additionality: We will work with the fund to develop robust impact, environmental and social and business integrity management systems. As part of the due diligence process, we also worked with the fund to complete an Operating Principles for Impact Management assessment, and a related action plan will be implemented over the lifetime of the investment

Risk

Stakeholder Participation Risk
  • The primary risk is that this is a first-time team with a limited collective track record. This is mitigated through our due diligence process, which established that the team is well-functioning and experienced, combining strong market knowledge, local networks with private equity investment experience in SMEs in emerging markets.

Impact score

Impact score (at point of investment)

The Impact Score is a tool to help us manage our performance against our strategic impact objectives. It is designed to incentivise investments that support our productive, sustainable, and inclusive objectives. You can find out more here.

The Impact Score is published for investments made from 2022 onwards. The Impact Scores are calculated at the point of investment. We publish the Impact Scores of new investments annually, once the information has been externally assured by an independent third party.

2

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

We agreed an ESAP which included the development of a formal ESMS and updates to internal safeguarding and grievance mechanisms.

Environmental and social risk

Medium-Low

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    :
    March 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D5641
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    Rest of the World
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Consumer - other services, Financial services, Food & Agriculture, Infrastructure, Manufacturing

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Fund
    Start date :
    November 2022
    Amount :
    $10m
    Currency of investment :
    USD
    Fund Manager:
    SEAF Caribbean Management LLC
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Canada
    2X Gender Finance

    Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.

    :
    Partially qualified

Investments made by this fund into companies:

For further information about these companies, visit https://www.seaf.com/

Investment name Country Region Sector Start date Status
CAMEX Restaurants Inc (CRI) Guyana Rest of the World Consumer - other services December 2022 Active
Caribbean Energy Finance Company Limited (CEFCL) Jamaica Rest of the World Financial services December 2022 Active
German Ship Repair Jamaica (GSRJ) Jamaica Rest of the World Manufacturing February 2023 Active
Royal Treats Caribbean Rest of the World Food & Agriculture November 2023 Active
Stages Group Inc. Trinidad and Tobago Rest of the World Manufacturing December 2022 Active
Sunco Caribbean Caribbean, St Lucia Rest of the World Infrastructure September 2023 Active

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