Capital

Capital Strategies

Financial Capital for Small Businesses

More than half the world’s GDP is in emerging and frontier markets. Because traditional financial institutions are typically unable to support sales and direct foreign investment in these areas without government or multilateral development institutions’ involvement, Interlink provides funding and risk mitigation such as:
  • Business development seed money
  • Export/import working capital
  • Vendor financing (short, medium, and long-term)
  • Direct foreign investment support (limited recourse to long-term project debt and preferred equity)
  • Private equity
  • Strategic alliances
  • Insurance, bonding, and guarantees
  • Technical assistance for small businesses to qualify and benefit from the aforementioned sources.

Human Capital for Small Businesses

Beyond financial capital, Interlink also advises clients on expanding and/or developing new overseas markets and sales channels, as well as assisting in making their projects bankable and sustainable. Clients receive timely support with market surveys, business plans, financial models, and identifying specific opportunities and potential sales partners. For companies seeking to enter the North American marketplace, the world’s largest, we can incubate and provide a broad range of services for branches of overseas companies seeking joint ventures, distribution, or local representation.

Fund Management

Interlink has successfully set up and run a number of private equity funds, as well as assisted in creating several public sector catalytic funds. Since debt is frequently not enough to encourage private sector investment in emerging/frontier markets, multilateral and bilateral DFI’s have made capital available to private and quasi-public fund managers to invest in certain sectors.

Interlink and its principles have a proven track record over several years in setting up and managing equity funds for investors and management teams. From working with OPIC to establish one of its first equity funds in the 1990s focused on agribusiness in the former Soviet Union countries, to currently managing a €55 million early-stage geothermal development fund focused on Latin America for the German government (KfW) and the European Union, to launching a venture capital fund in Jamaica with the Inter-American Development Bank, or creating a small business exporter oriented EXIM delegated authority lender, our team has won international tenders and worked successfully with a number of DFI’s and ECA’s to address financial inclusion issues.

Interlink Capital Strategies currently manages these funds:

Fund 1. The Geothermal Development Facility (GDF)

About the project

Fund 2. FDI Capital

About the project

Fund 3. Interlink Equity Fund

About the project

Fund 4. Government Contracting

About the project

Inclusion Importers

Interlink Inclusion Importers (I³) is an expansion of decades of the firm’s efforts to provide market access to companies that are seeking to expand into the North American marketplace. It provides research, and marketing support, as well as develops sales opportunities with North American businesses and consumers. It can also develop a comprehensive and actionable marketing strategy tailored to the specific needs of the client, ranging from distribution agreements and procurement contracts to a fully staffed U.S.-based joint venture.

Fund 1. The Geothermal Development Facility (GDF)

The Geothermal Development Facility (GDF) for Latin America is the first of its kind early-stage geothermal power development fund focused on proving whether there are sufficient hot water resources to support utility-scale, baseload renewable power. Created by Interlink and its partners in 2014, and funded by the European Union and the German government (KfW), the €70 million funds provide up to €10 million per project to execute a drilling program with an overall goal to develop 350 MW of utility-scale power in this resource-rich region of the world where there are currently few operating geothermal power plants. While there are several large-scale renewable projects (e.g., wind and solar) in Latin America, the value of baseload renewable geothermal power versus intermittent sources in the region is becoming increasingly important.

Fund 2. FDI Capital

FDI Capital is a trade finance fund that provides short-term credit extensions (less than 365 days) to small and medium-sized importers and exporters. It is a Delegated Authority Lender for U.S. ExIm Bank export working capital loans and holds a Master Guarantee Agreement to extend medium-term loans (up to 7 years) to importers of U.S. goods and services. For ExIm Bank transactions, FDI Capital has funding support from the Private Export Funding Corporation (PEFCO), the capital markets affiliate of the U.S. government agency. A significant part of FDI Capital’s portfolio is not U.S. government supported, which provides it flexibility in financing working capital solutions for small to medium-sized enterprises (SMEs) in loans ranging from $1-15 million.

Fund 3. Interlink Equity Fund

Interlink Equity Fund (IEF) is a Fund of Funds focused on investing primarily with top quartile fund managers in the North American private equity market.  IEF helps its high-net-worth clients to manage their assets and reach mutually beneficial outcomes for them and their investment strategies. Focusing on four investment classes (i.e., growth and private equity, private credit, high-tech and the ESG sectors), IEF closely monitors and tracks key areas to create an accurate portfolio risk allocation through its fund investments.  Ultimately IEF provides a stable foundation for fund investors to pursue consistent financial returns.

The core team at IEF has deep experience and excellent past investment performance in Silicon Valley and Wall Street with valuable networks in North America.  It maintains close partnerships with many top banks and private equity funds in the U.S., including those at Blackstone, Morgan Stanley, J.P. Morgan, New York Life and Goldman Sachs to name a few. Partnering with J.P. Morgan and Morgan Stanley gives IEF a solid foundation in the U.S. market to grow its investment portfolio.

Find more information on the fund on the links below:

Interlink Capital Private Equity Fund in Chinese

 



Fund 4. Government Contracting

Interlink is a government-approved financial advisor and contractor for multiple agencies, including the U.S. Development Finance Corporation, U.S. ExIm Bank, and the U.S. Department of Energy’s Loan Guarantee Program. It has also been approved to manage U.S. Agency for International Development programs ranging from facilitating Impact Investment between institutional investors in the U.S. and in Africa to raising catalytic funding for COVID-19 relief.