Senior Consultant for Regional Debt Fund Market Study - Georgia Financial Innovation Program

Project Overview and Background:

The five-year, USAID Georgia Financial Innovation Program (“The Program) seeks to increase the flow of diversified investment resources and innovative financial products to Georgia's private sector in order to expand businesses, create jobs, and attract additional private investment. The Program will achieve this through a holistic approach that:

Strengthens the financial market regulatory environment and infrastructure institutions while leveraging innovations in financial technology;Stimulates the market for equity and quasi-equity instruments and supports finance providers to offer an expanded set of innovative and diversified financial products and services tailored to Georgian start-ups and high potential SMEs; and,Supports Georgian businesses to access fit-for-purpose financing instruments through a network of professional transaction advisors.  

The Program will focus primarily, but not exclusively, on expanding access to finance for startups and SMEs with high potential for employment generation. It also includes a focus on non-traditional finance instruments. Furthermore, it utilizes a catalytic, blended finance investment mobilization platform to de-risk and leverage innovation and risk taking.

The Program is improving access to diversified investment resources in Georgia through a three-pronged approach targeting the financial market’s regulatory framework and infrastructure, financial intermediaries, and the private sector. Component 1 (C1) is strengthening the financial market’s regulatory framework and infrastructure to support the introduction of innovative and diverse financing products and services, Component 2 (C2) is supporting the local financial market to deliver innovative and diverse financial products and services to the private sector, and Component 3 (C3) is building the capacity of the private sector to access fit-for-purpose financing through transaction advisors.

Role and Responsibilities:

The objective of this consultancy is to provide short-term technical assistance (STTA) to the Program’s Component 1 and Component II teams on preparing and finalizing a market study to establish a regional debt fund.  This market study will inform the design of a request for applications (RFA) that the Program intends to release during the second quarter (Q2) of fiscal year 2025 (FY25). The purpose of this RFA will be to incentivize potential fund managers to establish a regional debt fund, with an emphasis on and physical presence in Georgia.  While the incentives have yet to be fully determined, they will likely be centered around providing   a first-loss facility, advisory work on fund structuring and pipeline development. Also, the market study will be released as an attachment to the RFA with the objective of providing critical market information to prospective fund managers that lowers their costs and risks of establishing a regional debt fund.

Key Responsibilities Include:

Under the supervision of the SFA/C2 Lead, the consultant will work closely with Palladium subcontractors PMCG and Galt & Taggart (G&T) who are fulfilling work streams 1 & 2 respectively, which are as follows: Work stream 1- legal and regulatory review of various potential jurisdictions of interest for the launch of a regional debt fund.Work stream 2 – financial analysis of the debt markets in the jurisdictions of interest.The consultant will play a key role in the development of the market study by providing strategic input, feedback, and general support to both PMCG & G&T on the fulfilment of their respective work streams.  This will include, but not be limited to:Providing input into a more fleshed out research scope, once developed, and questionnaire that will be developed by PMCG and Components 1&2 prior to its meetings with stakeholders.Reviewing and commenting on the findings of both work streams. Utilizing his/her industry experience and networks to validate the findings produced by both work streams; working with the Program’s technical team and subcontractors to convert and synthesize those findings into a regional market study that is designed to serve the needs of prospective/potential fund managers who would run such a fund.Holding regular meetings with the SFA/C2 lead, PMCG, and G&T to coordinate work streams 1 and 2 so that, combined, they identify the information that is most relevant to potential fund managers who would consider establishing a regional PD fund.Working with the SFA/C2 lead to integrate the written output of work streams 1 and 2 into a final market study that will, as been noted, shared with prospective fund managers.The consultant will work to address other issues that arise in line with the general objectives of this assignment.

Required Experience and Qualifications:

Proven expertise and a minimum of 10 years of experience in private debt and equity.Substantive experience working in private equity and/or debt in Eastern Europe and/or countries of the former Soviet Union.Significant industry experience that covers the entire investment cycle from fund raising to deployment and exit. Experience working on private equity/debt funds with international finance institutions (IFIs) including the International Finance Corporation (IFC), European Bank for Reconstruction and Development (EBRD), FMO, Development Finance Corporation (DFC), or others.Advanced degree (Master's or Ph.D.) in finance, business, economics, or a related field.Excellent analytical and writing skills and ability to synthesize complex information into actionable recommendations.

Deliverables:

Deliverable 1 - Draft interim report - Due January 15th, 2025Deliverable 2 - Interim Report - Due January 31st, 2025Deliverable 3 - Final Report - Due February 28th, 2025

Period of Performance:

This consultancy is expected to commence on or about December 1st, 2024 and be completed by February 28th, 2025

Type of Contract:

This will be a level-of-effort (LOE) based contract with up to 15 days in total