At Princelink Ventures we buy, sell and let properties in the region.

Our Business Advisory team develops and offers tailored, innovative and comprehensive solutions for specific client business needs that may not require the expression of opinions based on professional standards.

We focus on the following:

• MANAGEMENT • ENGINEERING • INFRASTRUCTURE • PROJECT
• ENERGY • CEMENT • STEEL • AVIATION • MARINE

EQUITY PARTNERSHIP

Equity participation is the ownership of shares in a company or property. Equity participation may involve the purchase of shares through options or by allowing partial ownership in exchange for financing. The greater the equity Participation rate, the higher the percentage of shares owned by stakeholders. Allowing stakeholders to own shares ties the stakeholders' success with that of the company or property. In this case, a more profitable company will provide stakeholders with greater gains.

VENTURE CAPITAL

This type of investment usually follows as the next step. It involves significantly more money and virtually always requires the investors to be involved in part of the overall running of the company and its decision making process. The average range for this step is often in the 6 figure range, and is invested as a type of Private Equity. Obviously, the overall aim is that the investors will generate a good return via the growth of the company and ideally the eventual Initial Public Offering (IPO) of the company. Venture Capital Investments are usually made in exchange for a percentage of the company's shares, which will provide a strong return on investment if the company is successful.

Other types of investment funding methods for businesses in their later stages include Hedge Funds and Collective Investments.

NB: Working with a good equity partner is probably the most important decision you can make for your real estate project. This person or group is your business partner. Not only is his capital critical to the success of the property, but a good equity partner may provide additional capital to help your property “weather the storm” if things don’t go as well as expected.

About the fund

We do impact investment providing debt financing and technical assistance to SMEs in East Africa. We currently operate in Kenya, Uganda and Rwanda.

Investment type

The debt funding that we provide ranges from a minimum of USD $100,000 up to USD $ 500,000 in the first round of investment for an initial period of up to 3 years.

Investment criteria

For a business to qualify for funding (loan) it needs to:

1)       be registered as a limited company

2)       have audited financial statements for the past 3 years

3)       be generating a minimum of  (USD 300,000) in revenue per year

4)       Have collateral to secure the funding (land). We use land even if given guarantee by a third-party.

The Due Diligence Process

We conduct a rigorous due diligence assessment before funds are disbursed in several stages as follows:

1.   Preliminary review of required information (audited accounts, company profile, investment
      needs)

2.   Initial visit - Usually at the company offices

3.   Discussion and agreement of indicative term-sheet (funding conditions)

4.   Stage 1 DD- Operational due diligence assessment

5.   Stage 2 DD- Financial and legal due diligence assessment

6.   Stage 3 DD- Impact assessments

7.   Investment Committee review and approval

8.   Final term-sheet offered

9.   Contracting and disbursement 

Please note that these stages can run concurrently depending on the organization’s preparedness.

Cost of capital for the loan/debt

The cost of funding for us is a bit different. We use multiples instead of interest rates. We also charge annual fees and a one off processing fee.

Multiple

For long-term loans, the multiple ranges from 1.3 - 1.4 over a 3 yr period. This means for a debt of say $100K, the total repayment over 3 years would be between:

• ·   $100K x 1.3 = $130K and

• ·   $100K x 1.4  =$140K.

Translating this to yearly cost, it would be between 

• ·   0.3 / 3 = 10% and

• ·   0.4 / 3 =13.3333%.

In case you have contracts that you are servicing and need a line of credit, the cost is different. We should be able to advice depending on your needs.

Annual Fees: 

We also charge annual fees of between $5,000 -  $7,500 fees for each of the 3 years. 

One off Processing Fee - 1.5% loan processing fees one off deducted from the first loan disbursement

Collateral

The loan is secured through land (developed or not developed). We accept 3rd party collateral in case the business or the owners have none to pledge.

In case of international exports, there is an extra requirement for trade insurance to be taken against credit sales and /or irrevocable letter of credit from a reputable and well known bank to guarantee payments.

Funding Terms

Funding terms depend on the results of the due diligence exercise. We recognize that each business is faced with unique circumstances and therefore, each term-sheet is different. If an organization is
considered for funding, we usually prepare indicative terms and share them early on.

Repayment 

The repayment structure is flexible and is tailored to suit the company's cash flows.

Please note that the debt is disbursed in USD and the corresponding repayment is also expected in USD.

Technical Assistance

We also provide technical assistance which is equally critical in the areas of accounting, finance, strategy,
management, and governance. This assistance is available both pre-investment and post-investment.

Excluded Organizations

We do not fund the following types of organizations / industries: 

• Pre-revenue organizations

• Primary agriculture organizations (growing crops & rearing animals) organizations

• Microfinance institutions

• Alcohol & Tobacco organizations

• Petroleum, oil, mining, logging

• Real estate development organizations (If the units are sold off plan, we can consider financing the development)

• Hotels, restaurants, tours & travels

• Aviation

• Any business that has a negative impact on the environment

Next steps for funding 

To start the process, we require the organization to send us the following information: 

• A brief profile of the company (location, workforce, structure, products, suppliers, market, financials, past performance, etc.).

• Audited accounts for 3 years

• Management accounts to date

• Certificate of incorporation

• Memorandum and Articles of Association

• Latest copy of CR12

• Latest KRA tax compliance Certificate

• Investment needs (purpose and amounts)

• Details of the land to be provided as security for the loan (copy of title deed, location, value of the land & pictures (if available), valuation report)

Click here FUNDING and submit your request online.

OUR MISSION

Our mission is to help you make better forecasting, promotions, pricing and markdown decisions based on fact-based insights about customer demand.

We strive to be a trusted business partner and work hard to ensure you realize significant business value for your investment-both today and into the future

OUR THINKING

Our integrity is exemplified by the steps we take to safeguard your proprietary information and maintain confidentiality with all forms of communication. Our system has been refined toward achieving the difficult combination of maximum exposure with the utmost confidentiality.

To be the number one investment hub.

CLIENTS

PV Ltd, their executives, employees and their Associates strive to act with integrity, responsibility, fairness, transparency and discretion at all times, we set new standards in partnering with our clients and providing them with the integrated financial solutions, we strive to create an open, respectful workplace, that encourages people to work together and with our clients to deliver superior products, services, results and support the success and prosperity of our partners, who are all working with the group.

OUR VALUES

We apply our passion investment and our interest in the world at large for the benefit of our clients, colleagues and the wider community

We work as one team: with clients, other consulting firms, advisers and each other – managing clients’ issues efficiently, anywhere in the world

PROJECT OVERVIEW

Initially we will require one to three page ( 1- 3page documents attached) project overview or short project summary and project quick fact form ( Executive summary )And if acceptable we will request further information including Full business plan, Financial projections, key persons resume's etc. Due to our principle's procedure, the project overview, quick fact form and executive summary is required for the preliminary assessment. Project overview should consist of the key details and information of the project as listed below:

Project overview/Executive summary should consist of the below, which are briefly mentioned in the project overview sheet also, this is purely project information, project description, Requirements, and must also mention clients financial input in the project.         

Details of how much funding is required, and what is clients financial inputs ( Liquid and Hard Assets)       

3. Details of payback facility.

4. What security is their, what funds have been already been spent ( proof will be required)

5. Any value, and who is the owner, etc ( if applicable )

BASIC PROCEDURE AND REQUIREMENTS

All funding requirements MUST be in USD/EUROS or GBP, and all documents must be in English,

Funding can be for most viable projects, Real Estate, Power Stations, Agribusiness, Refineries, Infrastructures, Hospitals, Hotels, Oil and Gas etc.

The Fund can be 100% Debt only, Debt/Equity, Equity Joint Venture partnership , and final approval/offer in principle can only be confirmed upon receipt of required documents, etc. For projects with Equity requirement, the equity participation can be from 15% up to a maximum of 50%.

Equity in the project, ( Subject to acceptance ) please see below for more information and the basic procedure.

1. Initially require one page project overview and project quick fact sheet and provided it meets lenders requirement, additional information, Business plan/Feasibility study, Executive summary, financial projections Resume's of all the directors will be requested, with any other documents etc.

2. Upon receipt of the above documents, and if project feasible, and acceptable to lender representative and the client will be arranged in most circumstances, but not always, ( question and answer session) where the client have the opportunity to ask further questions etc.

3. Face to face ( table top) meeting of the client with lenders representatives office  or clients office (client choice) where the client will be expected to present their project to the lenders appointed representatives and initial Due Diligence process commences, the client

will be responsible for lenders costs ( which will be specified in term sheet)

At  Princelink Ventures we are affiliated with over 50 different lenders/ funders  and number of options are available, some involve some commitment fees and others do not, the funding program that have elements of commitment fees, are only payable if any after the meeting and after the client complete assurance, and client will be provided with all the information regarding the fund/consortium, including court admissible evidence on the form of affidavits from former clients, that have closed transactions with the fund/consortium if any and client would only be required to make a decision following specific details/information provided before and after the 2 day meeting, in other in collaboration with clients legal, financial and any other form this may take within 10 days after the meeting, lenders minimum funding requirement is  USD 1,000,000.

Collateral requirement can be either form of class A shares in the company or first charge over the project, no additional personal or corporate guarantees or security are required and funding is non-recourse.

Whether our clients are securing capital for business acquisitions, to fund business growth or to provide shareholder liquidity Princelink Ventures  advisor are experienced in assisting with your financing strategy.

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