Experts to Assess Feasibility of an Investment Fund for Kosovo

Publikuar: 07-10-2024
Skadon: 15-10-2024

Ky konkurs ka skaduar

Kompani USAID Kosovo Investment Promotion and Access to Finance Activity

Kategoritë Të tjera

Numri i pozitave 1

Vendi i punës Prishtinë

Shikime 1786

USAID Kosovo Investment Promotion and Access to Finance Activity

Scope of Work

Short Term Experts to Assess Feasibility of an Investment Fund for Kosovo
(Business Plan and Financial Projections)

Project background

DT Global is implementing the 5-year USAID Kosovo-funded Investment Promotion and Access to Finance Activity (hereinafter “Activity”). The Activity aims to strengthen the private sector’s capacity to deliver sustainable economic growth through two mutually reenforcing objectives: 1) attracting and promoting investment; and 2) increasing access and utilization of diversified finance. By achieving these two objectives, the Activity aims to strengthen the resiliency of the private sector, create productive jobs, increase exports, and enable firms to adopt new technologies and business practices.

Assignment background

In Kosovo, as many transitional countries across the Europe-Eurasia region, access to finance for businesses—particularly Small and Medium-sized Enterprises (SMEs)—falls significantly short of what is necessary for these enterprises to realize their full competitive potential. This financing gap impedes the country’s broader economic growth, given that SMEs account for the majority of value creation in the economy. While Kosovo’s private sector credit levels are comparable to those of neighboring countries, the country lags considerably behind high-income economies. The primary challenge lies not in the lending practices of commercial banks, but in the near-total absence of non-bank financial options. Kosovo’s capital market is limited to government debt, and there are only a very limited availability of non-bank financial institutions offering critical products such as leasing, factoring, and equipment financing.

Attracting private non-bank finance to Kosovo, while desirable, remains a long-term endeavor. Currently, there is no legal framework in place in Kosovo for the establishment of investment funds or other capital market instruments. As a result, the incorporation and registration of an investment fund within Kosovo is not legally possible. The most immediate and effective way to initiate non-bank finance for SMEs in the country is through an investment fund registered abroad.

The Activity has facilitated critical stakeholder consultations involving key financial institutions, businesses, donor agencies, and international financial institutions and has developed a conceptual approach that proposes the establishment of an investment fund called the Kosovo Growth Fund (KGF). The KGF will seek to attract institutional and private investors to provide growth/risk capital to Kosovo’s SMEs, addressing the growth finance challenges that many viable enterprises face.

Following the development of the conceptual framework, the Activity is seeking to develop a comprehensive business plan and financial projections for a proposed investment fund aimed at providing financing to businesses in Kosovo. The deliverables will demonstrate the feasibility of the investment fund to key stakeholders, especially potential investors, local businesses, and other key partners.

The key objectives of the assignment are to:

Objective 1: Create a detailed business plan that among others outlines the vision, mission, and the operational framework of the investment fund.
Objective 2: Develop robust financial projections that illustrate the fund’s expected performance and impact.

To achieve these objectives, the Activity is seeking to engage two Short-Term Technical Advisors (STTAs). The first STTA will develop a comprehensive business plan narrative for the KGF. The second STTA will prepare detailed and robust long-term financial projections for the fund.

These two tasks are highly complementary, and the advisors will closely collaborate. The descriptions of these positions are separately presented below.

Position 1	STTA 1: Expert to Develop Business Plan and Narrative
Main Responsibilities	The responsibilities of STTA 1 are: Draft a comprehensive KGF Business Plan Narrative that will describe the Fund’s: Justification, mission, and strategic goals. Legal structure of the Fund. Governance framework and senior management of the Fund. Roadmap for initial EU registration and eventual Kosovo registration. Market analysis and competition. Investment strategy, providing a detailed description of the financing products of the fund (e.g. subordinated debt, senior debt, equity). Identification of investment opportunities and pipeline. Staffing and operational strategy, including fund management, technical assistance and other support functions. Investment origination, evaluation/due diligence, and recommendation process. Investment approval procedures. Investment monitoring and technical assistance. Capitalization strategy, identification of investors, and fundraising strategy, including transition over time to private sector investors. Performance and regulatory reporting. Risk management, identifying potential risks and mitigation strategies which are relevant for the Fund’s operations and investments. Any other matters normally covered by a business plan for a managed investment fund. Collaborate closely and support STTA 2 in the development of the Fund’s financial projections, including the specification of trends and parameters for development of the Base and Conservative cases. Collaborate and communicate closely with the Activity team throughout the assignment, ensuring alignment on objectives, approaches and progress updates.
Key Deliverables	Deliverables	Percentage of payment
	Develop and submit an outline for the KGF Business Plan Narrative, providing a comprehensive framework for the final document, for Activity approval.	10%
	Draft and submit a detailed first draft of the KGF Business Plan Narrative for review and feedback.	50%
	Prepare and submit a second draft addressing initial comments and present it to the Activity team to obtain final feedback and ensure alignment with expectations.	20%
	Finalize and submit the KGF Business Plan Narrative, incorporating all necessary revisions and adjustments.	20%
Minimum Education Requirements	University degree in a relevant field.
Minimum Professional Experience	Demonstrated experience in business plan development for investment funds. Knowledge of investment fund legal structures and requirements, and relevant law and regulation in the EU and Kosovo. Demonstrated experience in senior investment fund management. Strong research and analytical experience. Excellent report drafting and writing skills. Strong interpersonal skills, ability to work independently and in a team. Fluency in English.
Period of Performance	October 2024 – January 2025
Contracting Mechanism	DT Global anticipates issuing a fixed-price contract. The selected consultant or company will be remunerated based on the submission and approval of the key deliverables outlined above.
Supervisor	Access to Finance Lead and Legal and Regulatory Reform Lead
Supervisory Role	None.
Travel Requirements	Travel is not anticipated as DT Global expects the STTA to complete the assignment remotely.
Selection Criteria	Consultants’ applications will be evaluated against the following criteria: Experience in business plan development for investment funds. Experience in establishing and managing investment funds. Depth of relevant knowledge, including relevant prior documented research and analysis.
Application Instructions: DT Global is accepting applications from both individuals and firms to complete the above Scope of Work. Individuals will be engaged through a fixed-price consulting agreement. Firms will be engaged through a fixed-price purchase order or subcontract. In your application, please indicate whether you are applying as a firm or as an individual. To apply please submit a CV and proposed cost proposal in English to [email protected]. The cost proposal must include all anticipated costs required to complete the above Scope of Work. Applicants are encouraged to use the budget template provided in Annex A. Please include the position you are applying for in the email subject line. The application deadline is October 15, 2024, by 17:00 hrs. We thank all applicants for their interest. Only short-listed candidates will be contacted. DT Global, LLC is an Equal Opportunity Employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, veteran status, gender identity, or national origin. DT Global, LLC prohibits discriminating against employees and job applicants who inquire about, discuss, or disclose the compensation of the employee or applicant or another employee or applicant.

Position 2	STTA 2: Expert to Develop Financial Projections
Main Responsibilities	The responsibilities of STTA 2 are: Prepare and document a 10-year financial projection for KGF, covering: Capitalization, with time-dimensioned buildup and breakdown by investor type and fundraising instrument type: equity, subordinated debt, and senior debt. Buildup of investment portfolio through investments to SMEs based on a mixture of loan types and terms, and of principal repayments and their reinvestment. Minimum prudential levels of fund liquidity and working capital. Loan default and write-off estimations, risk-assessment and mitigation strategies. Fund revenue growth projection – from origination fees, interest rates, and revenue royalties / shares. Staffing levels and employee costs. Other operational costs, including engagement of outside administrative and technical assistance services. Costs of registration, legal and regulatory compliance, and fund management. Expected investor returns, interest rates and dividend yields. Profit & Loss (P&L), balance sheet, and cash flow statements. Base Case and Conservative Case scenarios with capability of stress testing using different parameter assumptions. STTA 2 will also: Provide a written narrative summary of the financial projections covering both the Base and Conservative scenarios. Collaborate closely with STTA 1 to incorporate information from the financial projections into the Business Plan Narrative, and obtain alternative parameter estimates for the projections. Collaborate and communicate closely with the Activity team throughout the assignment, ensuring alignment on objectives, approaches, and progress updates.
Key Deliverables	Deliverables	Percentage of payment
	Prepare and submit a draft multi-year financial projection for KGF in MS Excel, encompassing both Base and Conservative cases, and present to the Activity for review.	50%
	Incorporate feedback and deliver the final version of the KGF financial projections, in Excel format, and present the completed financial model to Activity.	30%
	Prepare a narrative description of the Base and Conservative cases, along with a concise PowerPoint presentation (maximum of 10 slides), incorporating exhibits that can be utilized in investor meetings. Finalize after Activity feedback.	20%
Minimum Education Requirements	University degree in a relevant field.
Minimum Professional Experience	Demonstrated experience in business plan development and financial projection for financing facilities and vehicles. Demonstrated experience in loan / investment management. Strong research and analytical experience. Excellent report drafting and writing skills. Strong interpersonal skills, ability to work independently and in a team. Fluency in English.
Period of Performance	October 2024 – January 2025
Contracting Mechanism	DT Global anticipates issuing a fixed-price contract. The selected consultant or company will be remunerated based on the submission and approval of the key deliverables outlined above.
Supervisor	Access to Finance Lead and Legal and Regulatory Reform Lead.
Supervisory Role	None.
Travel Requirements	Travel is not anticipated as DT Global expects the STTA to complete the assignment remotely.
Selection Criteria	Consultants’ applications will be evaluated against the following criteria: Experience in business plan development and financial projection for financing facilities and vehicles. Experience in loan / investment management. Depth of relevant knowledge, including relevant prior documented research and analysis.
Application Instructions: DT Global is accepting applications from both individuals and firms to complete the above Scope of Work. Individuals will be engaged through a fixed-price consulting agreement. Firms will be engaged through a fixed-price purchase order or subcontract. In your application, please indicate whether you are applying as a firm or as an individual. To apply please submit a CV and proposed cost proposal in English to [email protected] . The cost proposal must include all anticipated costs required to complete the above scope of work. Applicants are encouraged to use the budget template provided in Annex A. Please include the position you are applying for in the email subject line. Application deadline is October 15, 2024, by 17:00 hrs. We thank all applicants for their interest. Only short-listed candidates will be contacted. DT Global, LLC is an Equal Opportunity Employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, veteran status, gender identity, or national origin. DT Global, LLC prohibits discriminating against employees and job applicants who inquire about, discuss, or disclose the compensation of the employee or applicant or another employee or applicant.