Beruflich Dokumente
Kultur Dokumente
Alexander Gilles
Topic for Today
Private
Equity
Venture
Seed
Capital
Capital
ALEXANDERGILLES@GMAIL.COM
International Private Equity
• PhilamLife Private • TSV corp: mining
Equity Funders inc. • Mideast funds.
• SPNK (until 2009). • Washington Technology
• DWSG– active in Phils. Partners Inc. ArB.
• IBSJP– active through • Enviro-ventures Inc.
intermediaries. Seo. MaytF.
• Ivory Capital HK–
interested in Phils. • Investment Banker
checks if you’re ready.
ALEXANDERGILLES@GMAIL.COM
Care for
Nature
We’re
thinking:
Money Benefit
from to
Funders? Society
Care for
Nature?
They’re
thinking:
Benefit
Risk &
to
Return
Society?
Valerie Santos
• Filipina-American
Once served in a Philippine rural
area as a social worker, one
summer.
• Harvard MBA. Harvard JFK Masters in Public Policy
ALEXANDERGILLES@GMAIL.COM
Important to know
• Is it a Bankable project
• Project might be bankable, but is investment
money available.
• Investment money may be available, but is the
investor willing to invest.
• Investor may be willing to invest, but are you
able to communicate.
Low return, at
Low risk
Worst
Level of RISK, %
Thoughts
Level of RISK, %
Thoughts
Inflation: 6%
Bank Deposits: 3%
Level of RISK, %
Thoughts
120%
60%
40%
20%
- 30%
With some acceptable Risk
ALEXANDERGILLES@GMAIL.COM
Thoughts
Handover
to next
generation
Aggressive
Daring
Expansion
Investment
Tremendous
Struggle to increase in VALUE
Survive
16
Thoughts
Private
Equity
Venture
Seed
Capital
capital
Find a Creating
Path
value
18
Thoughts
ALEXANDERGILLES@GMAIL.COM
“Bankable”
70
50
Sales
7 Profits
Earnings
5 can be
forecast
2010 2011
Raw Add value =
material: Sell at 50
8 pesos Cook it.
Year 1
per season per annum
Operating Inputs Cost / Ha Cost / 10 Ha Cost / 10 Ha
Seeds 6,000 60,000 120,000
Fertilizers 10,700 107,000 214,000
Ag chem 9,800 98,000 196,000
Labor 10,150 101,500 203,000
Staff Wages 30,000 300,000 600,000
Fuel/Lube 2,600 26,000 52,000
Repairs 2,500 25,000 50,000
Miscellaneous 3,250 32,500 65,000
Total Operating Costs 75,000 750,000 1,500,000
Price per kg 50 50 50
7
5
2010 2011
Return on investment
After setting aside money for next planting,
you may divide up P7.5m.
Negative
cash flow:
Good project
Investment
Neglected project
Year Year Year
ONE TWO THREE
Negative More
cash flow: Investment Losses
Investment Needed
Plan for mango exports
Europe.
Fresh Process
Mango mangoes Export
USA.
Japan.
ALEXANDERGILLES@GMAIL.COM
RISK is
manageable 70
50
Sales
7
Earnings
5
2010 2011
Start
Business Danger Bankruptcy
Challenge
Recession
Lawsuits
CONFLICT
Shipwreck A high-value
enterprise
ALEXANDERGILLES@GMAIL.COM
Money is Money is
abundant scarce
AND especially IF
• If Good chance of
making sales & profits. • IF all things that could
go wrong, have been
addressed.
alexandergilles@gmail.com
If investors are Investors are
optimistic pessimistic
If economy grows
Philippines
2007
7%
5%
2009
1998
What makes them optimistic?
2%
2003 2009
What makes them optimistic?
6%
2007 2009
What makes the investor “able”
HIGH return,
at HIGH risk.
Returns, %
Level of RISK, %
Important to know
• Is it a Bankable project
• Project might be bankable, but is investment
money available.
• Investment money may be available, but is the
investor willing & able to invest.
• Investor may be willing & able to invest, but
are you able to communicate.
Research
Your
Proposal
Private
Public-
Partnership
JOINT VENTURE
alexandergilles@gmail.com
Mangrove:
Your project. reforest…
Business
angle?
Sustainability?
Ability to Social
bring in benefit:
sales to Food
cover costs? supply
Communicate your
business plan in
+ some ways that
requirement: pro investors can
appreciate and
If Environment? understand.
Private
Sector
leads…
Private + Some
business, expense:
partnership Benefit to
with investor. Society?
3000
2500 InvesTmenT
SALES
2000
NET PROFIT
1500
1000
500
-500 Million
Pesos
alexandergilles@gmail.com
If you want to know more: