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Description |
REG: KULA FUND II |
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Objectives and Scope |
The primary objective of the Fund is to provide long-term equity finance to SMEs in the Pacific islands. SMEs throughout the region need long-term financing to take advantage of broadly stable economic conditions, but struggle to meet collateral requirements for traditional debt financing. The Fund aims to fill this gap, and to actively assist investee companies to develop business plans, improve capital structures, and implement international standards of corporate governance. |
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Linkage to Country/Regional Strategy |
ADB's investment in the Fund is consistent with ADB's Pacific Strategy and supports the increased private sector focus of ADB's Pacific Department on both regional and country levels. The Fund (i) will help advance financial sector development, (ii) is designed to directly support private sector activity through provision of equity funding and management support to investee companies, and (iii) will help build capacity in a fledgling private equity market. |
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Status of Development Objectives |
The Fund helps to (i) create sustainable private sector jobs in the Pacific islands through its investee companies; (ii) build capacity in a narrow financial sector; (iii) diversify sources of finance available for SMEs; and (iv) build sustainable private sector companies by providing management advice to SMEs. |
