Sharakat was established in 2013, and is responsible for structuring, managing and monitoring the various PIF dedicated investment funds in the MSME space, in addition to monitoring a number of existing and new MSME financing and guarantee facilities and investment vehicles that are managed by partners.
Sharakat consists of a number of MSME investment funds and financing programs targeting different economic sectors and geographic areas.
Sharakat Investment Fund targets a number of vital economic sectors that are crucial to the development of the Palestinian economy. Some of the investment funds are managed by Sharakat’s own team while others are managed by Sharakat’s partners. Sharakat’s internally managed Investment Fund focuses on MSME’s in the following sectors and areas: Jerusalem, Microfinance, Agriculture, Industry, IT, Health, Education, and Renewable Energy.
Sharakat Financing Facilities support a wide section of MSMEs, cover a wide geographic area, and include direct lending facilities (both conventional and microfinance), and loan guarantee facilities. Sharakat’s Financing Facilities, which are managed by partners, include: Loan Guarantee Facility, Ijara Company, and Jerusalem SME Lending Facility.
Sharakat’s mandate is to facilitate the channeling of equity and debt capital in a sustainable and commercially sound manner into the MSMEs space in Palestine, with the goal of promoting the MSMEs sector’s development and growth. To achieve this goal, “Sharakat” engages in a diverse set of investment activities that range from direct and indirect equity investments to direct and indirect loan provisions and loan guarantee schemes.
Sharakat’s Key Investment Terms:
– Sharakat invests in established and start-up MSME’s with high potential for growth and expansion.
– Sharakat’s investment ticket size ranges from USD 0.2 million to USD 3 million for a stake between 15% and 40%.
– Sharakat plans to exit investments within 5-7 years after companies become able to survive on their own.
– Exit strategies include: IPO, management buyout, and sale to strategic investors.
Sharakat provides its portfolio companies with organizational and technical support in order to assist them in achieving operational and financial excellence. Sharakat adds value to portfolio companies through the following means:
– Providing capital investments
– Assisting in strategic planning
– Applying corporate governance models
– Engaging portfolio companies in new networking opportunities
– Providing companies with technical and organizational support
– Cooperating with the companies to accelerate growth and share risks