Seed Equity

Growth Investment Portfolio

Equity Medium Risk Growth

About Seed Equity

SEEDequity is a Special purpose vehicle (SPV), focused on short-term investments in stable and growth prospect sectors. Promoted and managed by SEED Investments Pvt. Ltd., this SPV aims to support private equity investments in Nepal.

SEEDequity makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies, including leveraged buyouts, infusions of capital in stable existing businesses, and growth capital. Often described as a financial sponsor, as it raises funds that will be invested in accordance with one or more specific investment strategies. SEEDequity mainly focuses on investing in stable return companies to minimize the investment risk.

Investment Management Overview and Arrangements

Initial Paid-up Capital: NPR. 75 million
Shareholding Structure: Differential rights shareholding:
  • 10% Group A Shares; promoter and management partner with extended voting rights (1:5.5)
  • 90% Group B Shares; promoter and investment partner with differential voting rights (2:1)
Fees and Administrative Costs: SEED Investments will charge SEEDequity and its shareholders the following fees for managing investments:
  • Annual Management Fee (payable annually) charged to SEEDequity: 2% of the investment fund under management
  • Carried interests or performance bonus (at exit) from SEEDequity shareholders: 20% of return in excess of the defined hurdle rate (currently annualized at 10%)
Investment Timeline: 5 Years (mandatory)

Exit Clause before mandatory time: Exit fees as applicable and paid to SEED Investments
  • 2% administrative fee on exit if the investor finds their own buyer
  • 2% administrative fee and 2% finder's fee on exit if SEED Investments finds the buyer
  • No fees after the completion of the mandatory 5 years

Fund Overview

Investment Manager SEED Investments
Current Fund Size NPR75 Million
Launch Date November 19
Current Unit Price NPR100
Launch Unit Price NPR100
Min Lump Sum NPR1 Million
Min Placement Order NPR10,000
Annual Fee (excl. VAT) 2.00%
Upfront Fee 0.00%
Benchmark Hurdle
Performance Fee 20% over Benchmark
Minimum Years 5 years
Classification Multi Asset - Equity
Risk Rating

Investment Allocation Strategy

Investment Structure and Criteria

  • Buyouts
  • Infusions of capital in stable existing businesses

Investment Sizes

  • Small Size: < NPR 2.5 Million
  • Medium Size: NPR 2.5–5 Million
  • Large Size: > NPR 5 Million

Engaged Sectors

  • Clothing Retail
  • Apple Processing
  • Organic Farming
  • Hygiene and Sanitary Manufacturing Unit

Sectors and Preference Areas

  • Food and Food Processing: 25%
  • Retail: 25%
  • Service: 10%
  • Information Technology: 10%
  • Production and Manufacturing: 15%
  • Tradable Securities: 15%

How We Create Value

🎯

Strategic Guidance

We work closely with management teams to develop and execute strategic plans that drive growth and operational excellence.

🤝

Network Access

Our extensive network of industry contacts, advisors, and partners provides valuable business development opportunities.

📊

Operational Improvement

We help optimize operations, improve efficiency, and implement best practices to enhance business performance.

💰

Financial Expertise

Our team provides financial planning, capital structure optimization, and access to additional funding sources.

Ready to Invest in Growth?

Join our Seed Equity portfolio and participate in the growth of promising businesses with strong potential for value creation.