TASME
TAEF designed a SME platform, the TASME, that invests directly in SMEs through an innovative financing mechanism based on performance based mezzanine products.
TASME at a glance
Early in 2015, TAEF established a platform specifically designed to invest in small mid cap SMEs : the Tunisian American SME Company (TASME).
TASME adapted an innovative financing mechanism specifically designed to meet the needs of SMEs that combines equity, debt and mezzanine financing. This financing structure injects capital, provides loans and funds growth without fundamentally impacting the shareholding structure and governance while linking TASME to the potential upside of improved SME operating performance.
TASME targets existing SMEs in a value added sector that have opportunities for significant expansion and impact on the local ecosystem.
TASME investments target entrepreneurs with a particular interest in women and youth. TASME seeks investments throughout Tunisia that sustain and create jobs.
TASME invests in sectors permitted by the US government.
TASME encourages its’ investees to adopt best practices and governance standards. SME investee growth is furthered by access to TASME’s networking and market access and technical assistance program implemented in collaboration with USAID programs.
With this specific focus, TASME intends to address the needs of the missing middle SME segment having difficulties to find financing elswhere (banks, FCPR, SICAR..).
Condition of funding
| EQUITY | SHARHOLDER LOAN | INVESTMENT AMOUNT | INTEREST RATE & PERFORMANCE FEES |
TERM |
| A minority Equity (not exceeding 20% to 40% of total exposure). |
60% to 80% of total exposure. | $150,000 to $2,500,000 equivalent in TND. |
|
Term of 4 to 6 years with 1 to 2 year grace on principal payments. |
| Board seat or equivalent. | Quarterly payments. | Flexible mechanism adjusted to the cash flow and the growth of the company. |