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The North Fund |
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The North Fund is a community development venture capital company and provides equity investments and business assistance to selected small- and medium-sized enterprises in northern Poland. It has been founded by the Small Enterprise Assistance Funds (SEAF) from Washington D.C., the Cooperation Fund and the Foundation for Development of Polish Agriculture. The North Fund invests jointly with CARESBAC-Polska SA and the investment capital has been raised from the Ford Foundation. The North Fund was established for the promotion of sustainable regional development in some of the most economically neglected parts of Poland. USD 2 million of investment capital is targeted for the regions of zachodniopomorskie, pomorskie, kujawsko-pomorskie, warminsko-mazurskie and former pilskie and suwalskie where unemployment is high and investment capital is scarce. The North Fund draws attention and, more importantly, assistance and needed development capital to small- and medium-sized businesses in this part of Poland. Generally, the Fund seeks a combined 25% to 49% minority stake in local, private companies for an average of USD 250,000 in exposure per investment. Most investments will range from USD 25,000 to USD 400,000. Targeted companies employ between 5 and 100 people and have an annual turnover of USD150,000 to USD2 million; they must demonstrate strong, sound management as well as a coherent business plan. Investments in chosen companies will be intended to finance specific projects for modernization and expansion of the companies or for their permanent working capital requirements. Fundamental to the Fund’s purpose is the provision of technical assistance to investees in such areas as management, planning, accounting, technological improvement, product development, quality control and marketing. In its analysis of a potential investee, the staff of the North Fund works with the company’s management to identify crucial areas of training or technical assistance. The key to effective investing lies in the degree to which the Fund can establish a relationship of trust and mutual interest between the investor and investee. The North Fund is prepared to do everything possible to create and maintain such a relationship with promising investees, and will strive to work closely to ensure a successful venture. Through its investment activity, the North Fund intends to promote business development and job creation for unemployed and low income residents in the ecomomically-distressed rural region of Northern Poland . The North Fund seeks to improve economic development in these designated regions through collaboration with other organizations providing community development services similar to those provided by organizations in the United States. These include management training in organizational development, compensation practices and incentivization of employees. The Fund will also work with local government agencies to identify unemployed and otherwise disadvantaged persons appropriate for hiring by investees and other enterprises with which the Fund has contact. With the participation of SEAF, CARESBAC-Polska, and other community development organizations, the North Fund aims to bring a range of technical resources and significant financial experience and capital to Northern Poland. For more information, please contact: Fundusz Północny S.A. |
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