FyreFem Private Debt Fund
"There are not enough women-owned mid-size SMEs. We want to be catalytic in this space." - Cathy Goddard
Type of Finance: Growth Funding
We wish to fund women-owned SMEs in South Africa with both secured & unsecured loans in support of either growth or acquisition mandates. Funding will be provided to an SME that is at least two years old and post revenue (senior & mezzanine) or to the acquiring entity that has a contracted coupon or dividends. We will issue funding to women to buy into businesses on condition that this is invested directly into the company for growth and there must be a commitment to cashflow to service the loan.
We acknowledge that many businesses may not initially be women owned and accordingly of our investee companies, at least 50% must be women owned. For those that are not initially women owned, we aim to empower women in the organisation, so that upon our exit women owners would have been created.
Where unsecured debt is issued, an equity-like upside is taken in order to compensate for the high risk of investment. We will have a bias for women owned businesses through a preferential interest rate scheme. Should a non-women owned business apply for finance then interest rates will be reduced for such business if they (a) agree to create women shareholders up to a certain percentage; or (b) promote women managers, board or other management committee; or (c) increase women employment up to a certain percentage.
Our model is to create women ownership in SME’s through direct facilitation between prospective women owners and SME’s. We upskill the new women owners. We present our SME’s to Impact funders to access growth capital. We use our deep networks in Finance and Private Equity to achieve these outcomes and pair this with deal structuring skills to facilitate the entry of new owners. We create and upskill women owned SME’s so that they can take a seat at the board and C-Suite with confidence. This programme is called is the FyreFly Development Programme. Women who are selected from the SMES to partake in this programme will benefit from the following initiatives:
Monthly development modules in essential business subjects;
Cohort Circle Engagements with leading women in business;
One-on-One Consultation and Coaching;
Sponsored Insight Events
FinFind data 2017 suggests only 32% of SME's are owned by women.
SME Incubation & Training
At financial approval we ensure that SMES obtain the necessary support & guidance to ensure that the growth funding is put to good use and that the capital invested is returned timeously.
Incubation: Where we hold an equity stake or provide mezzanine upside in the investee business then that SME will enter our incubation FyreFly Development Programme.
Training & Services: Regardless of whether the SME is a part of our Incubation programme or not, all SMES will have access to accounting & company secretarial services and basic training that is essential for the running of a successful enterprise such as Company Secretarial; Accounting & Tax Support; Legal and HR; Marketing & Media; Business Strategy; Leadership; Incentives; ESG & Governance; Grants & tender preparation
We look at all sectors, but we are particularly interested in industries with
good future growth potential and which are manageable from a risk and
monitoring perspective, such as:
Food & Beverage
Hospitality & Services
Fintech & Logistics