Market Study regarding a multi-sector Mid-Cap fund, focused on Senegalese companies
1. Background of the initiative
- Fonds Souverain d’Investissements Stratégiques (“FONSIS”), the Senegalese Sovereign wealth fund, is collaborating with its partners to raise a EUR 100 million, Senegal focused Mid-Cap Fund (the “Fund”). The Fund is an innovative, multi-sector, mezzanine fund, and will target in particular medium sized entities operating in strategic growth sectors of Senegal.
- The Fund is a private investment vehicle seeking commitments from commercial banks, impact investors and Development Finance Institutions (DFIs) to reach a target capitalization of EUR 100 million. The objective of the fund is to strengthen and benefit from growth opportunities arising from Senegal’s structural transformation of its economy through the Plan Senegal Emergent (“PSE”). The Fund objective should be achieved by boosting private companies through an increase of resource allocation in commercially viable and underserved segments of the Senegalese economy. The Fund mandate is to maximize investors’ returns while having a lasting impact in its targeted investment sectors. In pursuing its investment objective, the Fund intends to invest in companies with high value potential, provide consistent returns to investors while mitigating associated risks.
- The Fund has been conceived in particular to support high potential companies across five (5) priority sectors: Agribusiness, Healthcare, Energy, Education, and WASH (Water, Sanitation and Hygiene). The Fund’s investments are expected to deliver strong commercial returns to investors, in addition to having significant economic impact in Senegal’s private sector.
2. Presentation and role of stakeholders
- FONSIS is an investment holding company wholly owned by the State of Senegal. FONSIS invests alongside domestic and foreign private investors. FONSIS’ mission is to promote the role of the State of Senegal as an investor and partner of the private sector, with the aim to enhance direct investments in order to accelerate economic and social development through wealth and job creation for present and future generations. FONSIS will act as an anchor investor to the Fund and shall sponsor and support the establishment of the Fund.
3. The Assignment:
- The Assignment entails the overall responsibility for: (i) Assessing the Senegalese market’s ability to absorb a EUR 100 million commercially oriented mezzanine fund targeting the following sectors: energy, education, health, agribusiness, water & sanitation; (ii) Assessing legal, economic and regulatory environment for each of the Fund’s targeted sector with regard to private sector involvement; (iii) Exploring options available to the Fund regarding mezzanine instruments, coupled with the regulatory framework for each of those instruments; (iv) Assessing the most fiscally and financially savvy structure(s) in order to provide an enhanced risk/return profile for the Fund’s mezzanine investments; (v) Identifying an eligible and realistic pipeline of potential investee companies for each targeted sector; (vi) Evaluating the Fund’s financial and contractual risks; (vii) Appraising the Fund’s competition.
4. Required Basic Qualifications:
- Interested firms should provide relevant information on their qualifications and experience demonstrating their ability to provide the services, including: (i) documented track-record of leading and undertaking similar assignments ; (ii) experience in private credit, private equity ; (iii) strong track record / experience on the targeted sectors ; (iv) evidence of a strong operational and management team, including experienced financial engineers, senior lawyers (with expertise in the following area of practice: bankruptcy law and corporate law), experienced experts of the targeted sectors and tax experts. The team is expected to be fluent in French and English; and (v) substantive presence and/or proven capacity to undertake the assignment in the Senegalese environment.
5. Recruitment process:
- A shortlist of qualified firms will be selected to receive the Terms of Reference (ToR) by an evaluation committee comprising representatives from FONSIS. Expressions of Interest (EOIs) submitted by Interested Firms, which should not exceed fifteen (15) pages in length, may be shared with other potential investors in the Fund.
EOIs will be evaluated taking into account the basic qualifications contained in Clause 4 of this REOI and against the following criteria:
|Experience and track record undertaking similar assignments by the Firm.||10%|
|Industry experience and track record regarding the Fund’s targeted sectors.||25%|
|Experience in private equity and/or private credit (mezzanine) industries.||25%|
|Relevance of team profiles, qualification and experience.||25%|
|Relevant experience in Africa and/or other frontier markets (relevant experience in West Africa and/or Senegal would be an advantage).||15%|
Please note that interest expressed by an Interested Firm does not imply any obligation on the part of FONSIS to include it in the shortlist of firms to receive the ToR.
6. Estimated duration of services: The estimated duration of services is two (2) to three (3) months.
7. Interested Firms may obtain further information at the electronic mail address below during working hours: 09:00 to 17:00 hours (GMT) until July 19, 2019 at 17:00 (GMT); firstname.lastname@example.org.
8. Expressions of Interest must be received at the following email address: email@example.com no later than July 22, 2019 at 23:59 (GMT) and specifically indicating “Market study for a multi-sector Mid-Cap fund, financing high potential SMEs in Senegal”. Expressions of Interest (EOIs) must be submitted in pdf format and shall not exceed fifteen (15) pages.