What is the Youth Enterprise Equity Fund (YEEF)?
A product conceptualized and promoted by the Saint Lucia Development to assist in bringing young enterprising people within the main stream of economic and social development in Saint Lucia.
Purpose of the Fund
The YOUTH ENTERPRISE EQUITY FUND is a source of equity financing established to assist in providing start-up equity for young entrepreneurs. The fund has been incorporated as a tax-exempt Limited Liability Company under the Laws of Saint Lucia and is being managed and administered by the Saint Lucia Development Bank with other major investors as shareholders. Small investors will also be encouraged to participate in the fund.
The Fund is an open-ended Fund from which investors shall have the option to exit after a minimum period of five years based on the calculation of the Net Asset Value (NAV) of the Fund.
It is envisaged that the product will be administered through partnership with, the Government of Saint Lucia (GOSL), other state Agencies such as Office of Private Sector Relations (OPSR), through its CLIMB programme, the National Insurance Corporation (NIC); the National Skills Development Center (NSDC), the Sir Arthur Lewis Community College (SALCC); and other investors and partners in the fund.
Criteria
1. At the time of application, the promoter (s) of the business (Investee Firm) should not be over 35 years old;
2. The Investee Firm must be a duly incorporated, registered, and licensed business entity;
3. The promoter(s) must have undergone a recognized technical training programme through one of the partners or any other accredited programme of technical training as determined by the SLDB;
4. The promoter (s) must have completed the business management training programme organized and sponsored by the OPSR or other approved provider of such training;
5. Promoter should submit a workable business plan with all relevant details to assess the technical, economic and financial viability of the enterprise;
Type of Investment
Investment in the firm shall be in the form of common shares and/ or preference shares. In determining the contribution of the Promoter(s) in the business entity, any grant funding obtained towards establishing the business and providing pre-operating services shall be valued and be regarded as part of the promoter’s equity.
Period of Investment
The period of investment in the entity shall be for a period of no more than seven (7) years after which the Fund is expected to exit the Business.
Exit Strategy
The Fund shall exit from the enterprise by way of a share repurchase by the Investee Firm, sale to a mutually agreed investor, based on the greater of the book or market value of the shares, using recognized valuation methodologies; or listing on a recognized securities exchange (ECSE).
