SEAF Sichuan SME Investment Fund
Founded in 2001, the SEAF Sichuan SME Investment Fund (SSIF) works actively to fill the existing shortage of growth capital available to private enterprises in the Sichuan province. In so doing, the fund fuels the growth of the region’s most dynamic businesses, contributing to China’s overall economic development. Despite the fact that private enterprises in China generate an average annual employment rate of 25% compared to a declining employment rate in the state-owned and collective sectors, these companies face dramatic shortages in essential financing.
SSIF invests in promising companies based or primarily operational in the Sichuan Province and its neighboring provinces. Historically referred to as the “Province of Abundance,” the region is both a major agricultural and industrial center of China. When Deng Xiaoping took power in 1978, Sichuan was one of the first provinces to undergo limited experimentation with free enterprise.
Through direct investment, SSIF supports the sustainable growth of small and growing businesses in China’s new and dynamic private enterprise market. Through the successes of these companies, SEAF is helping to demonstrate the potential of a privatized economy to generate wealth while creating impressive economic and social development. Targeting high-growth sectors, the fund invests in companies with dedicated managers, attractive entry multiples, and strong growth potential. SSIF counts among its investments two snack food producers, a water treatment facility, and a leading construction materials manufacturer.
- Region: Asia
- Location(s): China
- Start Date: Jan 2001
- Status: Fully Invested
- Committed Capital: $23 Million
- Investor(s): SEAF; New York Life International; Swedfund International AB; International Finance Corporation (IFC); Norwegian Investment Fund for Developing Countries (Norfund); Deutsche Investitions – und Entwicklungsgesellschaft mbH (DEG)
- Managing Director: George Zhang