SEAF Caucasus Growth Fund

In March 2012, SEAF launched the USD 40 million Caucasus Growth Fund to invest in growing and dynamic small and medium enterprises (SMEs) in the Republic of Georgia, Armenia, and Azerbaijan. As was common in the region after the fall of the Soviet Union, these nations experienced major market contractions and drops in productivity, as well as political disturbances and conflict as the country struggled through a challenging period of transition away from communism. Nevertheless, they have made significant progress in instituting democracy and market reforms. Against this backdrop, SEAF, in partnership with the IFC and EBRD, established the Caucasus Growth Fund to promote transparent private sector development and poverty alleviation in Georgia.

Since launch, SEAF, through the fund’s local teams, has partnered with strong local entrepreneurs engaged in a variety of industries to promote domestic growth and economic independence and stability. Among other sectors, SEAF has invested in a supermarket chain and is currently exploring further investments.

While these nations have faced various political and economic challenges during SEAF’s tenure in the country, SEAF has engaged the power of ambitious entrepreneurs who, with CGF’s risk capital investments and business partnering, have achieved growth for their companies, sustainable employment for their citizens, and other positive impacts on their economies.

SEAF is a registered investment adviser with over 25 years of experience in impact investing in emerging and frontier markets. A key component of our due diligence process is ensuring all environmental and social impacts are accounted for and mitigated to the maximum extent possible. If you have any questions about Environmental, Social, or Governance issues in the Caucasus Growth Fund, please contact our Global Environmental Manager, Amanda Muncil at Amuncil@seaf.com.

  • Region: Central & Eastern Europe
  • Location(s): Georgia
  • Start Date: Mar 2012
  • Status: Fully Invested
  • Committed Capital: $40 Million
  • Investor(s) European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), the Netherlands Development Bank (FMO), and the Black Sea Trade, Development Bank (BSTDB), and SEAF.
  • Industry Focus: Consumer and business services, agribusiness, distribution, energy, and retail.
  • Managing Director: Armands Fomicevs