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FREQUENTLY ASKED QUESTIONS
1) Can the Fund provide financing to non-governmental organizations (NGOs), associations, or cooperatives without a legal corporate entity? No, EcoEnterprises Fund was set up to provide financing to private, for-profit companies based in Latin America and the Caribbean. These private companies usually are 'sociedades anónimas' or 'sociedades limitadas'. 2) How long is the investment review process and when may the funds be expected? Assuming the project adheres to the Fund’s investment criteria, the duration of the review from reception of the project profile form until the actual disbursement will depend on the timeliness and quality of the information provided by the company, negotiations, and legal documentation. The EcoEnterprises Fund has financed projects in 3 months. Timing depends heavily on a company’s response during the due diligence phase. 3) When is a visit to the project undertaken? A due diligence visit is only performed when the company has satisfied the Fund’s initial informational requirements and favorable discussions on terms and conditions are in process. EcoEnterprises Fund assumes most of the costs associated with the visit. 4) What about confidentiality? All information received by the Fund is strictly confidential. There is no disclosure to third parties without the consent of the project principals. 5) Will EcoEnterprises Fund help write the business plan? No. EcoEnterprises Fund may provide limited support (both financial and technical) to projects that the fund management team considers promising for investment. 6) What should the business plan include? Any standard format for business plans is acceptable. The Fund can provide a template to be used as a preparation guide. 7) Is it required that the business plan include environmental and social information? The evaluation of all projects is based on a triple bottom line analysis, i.e. financial, environmental, and social factors. Hence, the business plan must contain references to all three components. 8) What type of financing does the Fund offer? EcoEnterprises Fund makes medium- to long-term loans, which may be senior, subordinated, and/or convertible into equity, equity investments (acquisition of shares in the company), and a combination of both instruments. The final investment structure is determined by the fund management team in partnership with the company. 9) Does the Fund provide loan financing with conditions more favorable than market interest rates? EcoEnterprises Fund’s interest rates reflect business and project risks, whether the Fund obtains security, tenor of the financing, and the country in which the investment is situated. 10) How does the Fund exit an equity investment? The company must be able to provide a sound exit strategy which may include management and/or owner buyout, strategic sale, or establishment of a cash account to be used to purchase EcoEnterprises Fund's shares. 11) Where is EcoEnterprises Fund's office? EcoEnterprises Fund has an office in Arlington, Virginia at The Nature Conservancy's Worldwide Office, as well as a Latin America-based office in San José, Costa Rica. The investment team is based in Costa Rica. The Fund has contracted The Nature Conservancy to provide fund management services. 12) Is the Fund separate from the The Nature Conservancy? Yes, the Fund is a separate for-profit investment company. The Fund has contracted The Nature Conservancy to provide fund management services.
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