Nepal Impact Growth Equity Fund (NIGEF -1)
Transformative Investments in Nepal’s Future
Nepal Impact Growth Equity Fund -1 (NIGEF 1) is a
Specialized Investment Fund (SIF) scheme
proposed under the Specialized Investment Fund
Rules 2019. It will operate as a limited-life investment
vehicle, with Global Equity Fund Limited (GEF) serving
as its Fund Manager.
NIGEF 1 is a sector-agnostic fund primarily focused on providing growth capital to companies operating in key growth sectors, including Agriculture, Clean Energy, Education, Healthcare, Information Technology, Manufacturing, and Tourism.
NIGEF 1 is a sector-agnostic fund primarily focused on providing growth capital to companies operating in key growth sectors, including Agriculture, Clean Energy, Education, Healthcare, Information Technology, Manufacturing, and Tourism.
NIGEF 1 Investment: Strategy & Philosophy
NIGEF 1 follows a focused investment strategy, targeting private equity and venture capital opportunities in growth-stage companies with strong scalability. The fund emphasizes diversification to manage risk effectively, with defined limits: 15% per company, 30% per promoter group, and 40% per sector.
Investments are made through instruments such as ordinary equity shares, convertible preference shares, and other vehicles permitted by SEBON. Each investment includes a clear exit strategy, including strategic sales, promoter buy-backs, repayments, or IPOs.
Target companies must have at least one year of operations, or for energy developers, one year of construction with a PPA in place. A minimum expected ROI of 15% per annum is required. Every opportunity undergoes detailed commercial, financial, legal, and technical due diligence, ensuring a responsible and growth-oriented investment approach.
Target companies must have at least one year of operations, or for energy developers, one year of construction with a PPA in place. A minimum expected ROI of 15% per annum is required. Every opportunity undergoes detailed commercial, financial, legal, and technical due diligence, ensuring a responsible and growth-oriented investment approach.
Asset Allocation
- Private Equity Investments
- Venture Capital Investments (growth stage and beyond
Identifiable exit options
- Strategic Sales
- Promoter buy-backs
- Repayment
- IPO
Instruments for Investment
- Ordinary Equity Shares
- Convertible preference shares
- Other investment instruments as permitted by SEBON
Diversification
- Maximum investment (company) 15% of fund size
- Maximum investment (companies promoted by single group) 30% of fund size
- Maximum investment (sector) 40% of fund size
Investee Potential
- At least one year of full operation
- Exception: Energy Developer with one year of construction (PPA completed)
- ROI above 15% per annum over the period
Due Diligence Scope
- Commercial Due Diligence
- Financial Due Diligence
- Legal Due Diligence
- Technical Due Diligence
ELIGIBLE INVESTORS
The Nepal Impact Growth Equity Fund (NIGEF-1) is open to a range of qualified investors, including both institutional and individual participants. Eligible investors include:
- Banks, Financial Institutions, and Investment Companies that are operating under the regulatory framework of Nepal.
- Insurance Companies recognized and registered as per prevailing laws.
- Funds, such as Provident Funds, Pension Funds, Welfare Funds, and the Citizen Investment Fund, provided they are acknowledged by existing legal provisions.
- Bilateral or Multilateral International Institutional Investors who meet the regulatory and investment criteria.
- Nepali Citizens and Non-Resident Nepalis (NRNs) who are eligible under the prevailing investment laws.
Fund Sponsors
Surya Jyoti
