Investment Manager, SME Funds, Private Equity Funds
About the job:
Closing date: 27/07/2022
Our mission and objectives
British International Investment is the UK’s development finance institution, owned by the UK Government. We invest with the aim of solving the biggest global development challenges by investing patient, flexible capital to support private sector growth and innovation.
We invest to achieve impact and a financial return which is then reinvested for more impact. Over the past five years, we have committed almost £7 billion of new investments, with our net assets growing in value to approximately £7.5 billion. We are now invested in 1,200 businesses which directly employ over 900,000 workers and support many more. Over the next five years, we plan to grow further, and aim to commit around £9 billion of new investments over the period.
Our new five-year strategy responds to the opportunities and challenges facing developing and emerging economies. To ensure our capital is used in the best way possible to meet these opportunities and challenges, it sets out three clear strategic objectives – to invest in productive, sustainable and inclusive development. These objectives mean an increased focus on climate finance, including investing in green infrastructure; on financing digital transformation; and on driving inclusive outcomes, including through gender and diversity finance.
As part of our new strategy, we have changed our name to British International Investment (from 4 April 2022), to more accurately reflect our central role in the UK Government’s international financing offer.
We take an entrepreneurial approach to investment. We think innovatively about ways to deploy our capital, attract, and mobilise other investors, and drive transformational impact.
Team and role overview
Private Equity Funds sits within the Private Equity and Corporate Debt Group which manages all of BII’s investment activities in SMART Industries, (Services, Manufacturing, Agriculture, Real Estate and Technology) (SMART). SMART is organised along product lines: (i) Private Equity Funds, (ii) Direct Private Equity, (iii) Venture Capital, and (iv) Corporate Debt.
Private Equity Funds comprises of four sub-teams (SME Funds, Mid/Large Funds, Sector Funds and South Asia Funds) that are involved in sourcing, executing and managing fund investments and co-investments in Africa and Asia. The SME Funds team will closely collaborate with teams to achieve BII’s objectives.
Private Equity Funds takes a hands-on patient approach to develop the private equity industry across BII’s target markets, ensuring the right teams, strategies, skills and sectors are focused on to make underlying businesses sustainable, successful and impactful in the long term.
There are 5 levels in the team – Associate, Executive, Manager, Director & Team Head. The team is flat and people at all levels are involved all aspects of our work and transactions including presenting to Investment Committee and representing BII externally. Directors and Managers act as deal and portfolio leads/oversights.
The Investment Manager (SME Funds) will support the team’s strategy in developing innovative solutions to enable the growth of the SME sector across BII’s target markets, through the provision of capital to enable self- sustaining teams. We will pursue opportunities that support BII’s impact objectives by making Productive, Sustainable and Inclusive investments that:
• Provide access to goods and services to improve quality of life
• Provide income generating opportunities through direct and indirect employment
• Encourage institutionalisation of the informal sector, supporting responsible business practices
• Help develop human capital, with a focus on Diversity & Inclusion
• Support transition to net zero, and creation of just and resilient economies
Specific responsibilites will be driven by priorities and needs of the team at the time, but are expected to include some or all of the following:
• Lead role in managing a portfolio of SME funds in BII target markets (predominantly Africa and South Asia), including actively monitoring the financial performance and development impact of the funds and their compliance with BII’s investment policy
• Lead role in sourcing, analysing and executing new SME fund investments (and co-investments), with the objective of selecting fund managers/co-investments with the highest potential financial and developmental impact
• Working with BII’s Environmental and Social, Business Integrity, Development Impact, Legal and Finance teams in support of both fund selection and relationship management
• Building and nurturing relationships with key stakeholders in in our markets to support portfolio management and investment origination
• Travelling to BII target geographies to conduct onsite meetings as required
• Keep up to date deal flow, deal management and portfolio monitoring databases for all funds on which s/he is a team member
• Maintaining up-to-date market knowledge and relationships
• Leading the preparation of presentations to support team strategy and BII’s brand building with stakeholders
• Supporting and coaching junior team members in the SME Funds team and in deal teams
• Collaborating with colleagues across BII, including providing sharing market perspectives gained via our investments
Managing investment portfolio
• Formally, through the receipt and analysis of quarterly financial information and representing BII in advisory board meetings,
• Informally through active engagement with the fund managers, other investors, and other organisations active in the regional business community
• Collaborate with all teams across BII to support and add value to our investees
• Preparing materials and analysis for BII Valuations Committee and Portfolio Review
• Taking a pro-active approach to identify problems of under-performance and/or non-compliance at fund manager level
Evaluating new investment opportunities
• Building an effective network in the Private Equity Funds business
• Leading in the selection of funds which will meet BII’s objectives, including utilising BII internal tools for mapping proposals and implementing market scoping studies as relevant
• Reviewing proposals and preparing screening papers and, where relevant, leading the due diligence process on fund and co-investment proposals
• Leading in the preparation of recommendations to the Investment Committee
Reviewing documentation and negotiating fund commitments
• Reviewing all aspects of transaction documentation and leading the negotiation process
• Engaging with fund managers and other investors including regarding fee and incentive arrangements, investor rights, reporting, the powers of the management company and its relationship with investors, and BII’s side letter
• Seeking input early from Environmental and Social, Business Integrity, Development Impact, Finance and Legal teams and working alongside them in the investment process of each new fund
Maintaining up-to-date market knowledge
• Develop and maintain expertise on the economic, political and social conditions in BII markets
Background, skills, aptitude
• Suitable experience in private equity fund management and/or fund-of-funds management
• Proven business experience in an international environment, including a track record of working in emerging market finance
• Experience working in development finance is desirable, ideally in BII geographies
• Equity valuation and experience of direct investing desirable
• Good academic credentials, preferably including a post-graduate qualification such as CA/ACA/CIMA, CFA, IMC, MBA or equivalent
• Detailed working knowledge of and an active interest in investing in developing countries
• Rigorous approach to fund assessment and experience with relevant investment processes
• Familiarity with diligence processes, financial terms, legal terms
• Ability to analyse and bench-mark fund / investment performance reports / data
• Ability to develop relationships with fund management teams
• Knowledge of relevant markets and sectors to enable cross-examination of new fund strategies
• Portfolio management skills, including techniques for track record analysis, team skills analysis and an appreciation of the role of ESG
• Demonstrable professional and collaborative approach and ability to develop relationships within BII as well as externally
• Strong written and verbal communication skills
• Understanding and comfort with emerging market environments
• Willingness to travel within BII target markets
• Candidates should be strongly motivated by BII’s development mission and ideally demonstrate some commitment to development or social goals through previous executive or non-executive activity.
Our cultural values
We look for team members who aspire, as we do, to work at our best and to be:
• Impact-led, commercially rigorous
• Tenacious in the face of challenges
• Collaborative and caring
British International Investment is committed to diversity and inclusion and welcomes all applicants regardless of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, sexual orientation or educational background.
Please provide a cover letter with your application