The wheels are turning
When the company has been established, IFU appoints an investment manager, who can be consulted on an ongoing basis and who in many cases also serves as a member of the board.
When the investment agreements have been signed and the disbursement has been made, the cooperation enters a new phase in which focus is expanded to the many practical issues and details required in connection with establishing and operating the company in the particular developing country.
IFU appoints an investment manager, who will be in charge of advising the established company. The investment manager typically has experience from the country in question and will be on hand to help the company with contacts, building a network and with advice on everyday issues such as terms of employment, tax issues and operating a company in the host country. The investment manager in many cases serves as a member of the board of the project company.
During this phase, a need may arise for additional funding. Often, such need will relate to investment budget overruns or a need for general expansion because the company is more successful than anticipated.
In such cases, IFU can help increase the capital base, for example by contributing additional risk capital.