Head, Investments at FSD Africa

OVERALL JOB PURPOSE

• The Head of Investments will work under the CIO to implement the FSDAi investment strategy and goals, processes, and policies particularly in developing and managing FSDAi’s portfolio focused on new and alternative solutions to finance SMEs through variations of venture, debt and equity models. The successful candidate will initially lead on the implementation of a facility that invests in alternative asset allocators in Africa. This facility is designed to establish new asset classes. For this position, the Head of Investments will develop FSDAi’s approach to accelerate and mobilize innovative finance establishing new asset classes for start-ups and enterprises solving climate adaptation and resilience, nature finance, carbon markets, and achieving SDG and GLI (Gender Lens Investing) outcomes.  The Head of Investments will also be responsible for the leadership and support across FSDAi and FSD Africa for this market segment, both at the innovations needed at the intermediary level, as well as the financial instruments to the enterprises.
• Generally, the Head of Investments will lead in opportunity identification, deal-sourcing, investment memo preparation, due diligence, structuring and negotiating deals, closing and post investment monitoring of deal performance for the facility.  This includes leading on discussions with external stakeholders and developing solution/partnerships to design, set up and scale solutions for the venture finance space.
• In leading transactions, the Head of Investments will ensure rigor of the investment process, and will take responsibility for performance from a financial, and development (market building) perspective. As the head of the strategy for alternative financing vehicles, the Head of Investments will also be responsible for close collaboration with FSD Africa teams, and external stakeholders, and ensure thought leadership in this domain. The Head of Investments will report to the CIO, for onward reporting to FCDO, executive team, the Investment Committee, and Board, and take responsibility for quality documentation. The Head of Investments will perform governance roles, serving on investee boards and oversight committees of investees. H/She will give strategic and technical inputs towards driving the business objectives of the investees, as well as outputs of FSDAi/FSD Africa teams.

KEY RESPONSIBILITIES AND ROLE REQUIREMENTS

Market Intelligence and Expertise:

The Head of Investments is expected to have good market networks and intelligence with:

• A sound knowledge of the investment environment for finance and in particular climate finance, and in this case, early-stage venture, debt, and equity finance in new asset classes.
• A sound knowledge of business opportunities and ecosystem that will contribute to the depth and breadth within this asset class.
• A prior experience with blended finance solutions with practical experience with African venture, equity, and debt solutions.

Investment Expertise:

• The Head of Investments will support the CIO to strategically build a portfolio that promotes the sustainable development of African financial systems in new asset classes related to climate and driving FSDAi’s gender equity agenda and SDGs. The Head of Investments will provide support to the CIO in defining the strategy, scope, and criteria for investments to be made to test, accelerate, and mobilise capital for early-stage finance through alternative vehicles and instruments. S/He will lead in the stakeholder engagement to design and co-create innovative financing vehicles that address Africa’s finance gaps in these new asset classes. The role requires developing and leading on the portfolio construction and guiding investment teams in the selection and prioritization of pipeline that leverage existing initiatives to achieve market change.
• In addition, the Head of Investments will lead deal teams through the investment life cycle from screening, due diligence, preparation of and presentation of investment memos for approval, structuring, documentation, and closing transactions. S/He will be responsible for the ensuring adherence to the investment policies, processes, and guidelines, and provide the intellectual input into transactions that fit the FSDAi risk/return profile. The Head of Investments will structure investments to align with FSDAi risk and development mandates.

The Head of Investments is expected to show rigour in:

• Stakeholder engagements to develop the portfolio construction strategy as well as designing the solutions and investments to achieve scale, market change, and development impact.
• Identification and vetting of opportunities as they fit into the investment strategy.
• Guidance to teams producing the financial modelling and valuations of opportunities and investments and forecasting individual investment returns and overall portfolio returns.
• Presenting credible and convincing investment opportunities to the Investment Committee with support of the CIO.
• Oversight on scoping and procurement of consultants.
• Managing and executing on legal documents, due diligence, and agreements.
• Managing post deal execution to achieve results and development impact, and challenges as they arise.

Key investment management responsibilities in the investment process include production of quality:

• Investment papers that adhere to investment policy and guidelines
• Execution of commercial, financial, and legal due diligence.
• Strategy papers and reporting on development impact and financial performance.

Performance Management

• Following deal close, the Head of Investments will be responsible for the technical and performance oversight of investees, contributing to strategy and execution of the investment’s theory of change.  S/he will represent FSD Africa investments on the appropriate governance structure as agreed with the CIO, providing strategic direction, quick on time response and value addition to investments.

The Head of Investments will ensure rigour of:

• The portfolio monitoring, management, and quality and timely preparation of investee valuations and quarterly reports.
• Execution of good governance in investee companies, including compliance with financial reporting standards, ESG risk, gender diversity, and development outcomes.

Process Management

• The Head of Investments is expected to own and manage the investment process with professionalism and a collaborative spirit.  S/He is also expected to have high intelligence, maturity, and be articulate in communicating along the investment process including through memos, organising meetings and preparing minutes, and preparing and delivering presentations.

Stakeholder Management

• The Head of Investments will have key responsibility for managing the relationship with other partners in building the portfolio in the specified area, as well as with FSDAi’s funders.

Team Participation

• The Head of Investments is expected to exhibit drive and leadership with strong team participation with all members of FSD Africa.

PERSON SPECIFICATIONS

Qualifications and Education

• A good quality Master’s degree from a recognised university or demonstrated years of experience in venture, debt, and equity finance.
• Specific investment experience and a demonstration of creativity with investing in new asset classes, venture, debt, and equity finance.
• Demonstrated leadership and stakeholder engagement in early-stage finance in Africa.
• First-class skills communication and stakeholder engagement skills.

Experience, Knowledge, and Skills

Demonstrated understanding of African private investment market, investment cycle, fund management, investment structuring, deal analysis and structuring, business assessments and valuations, and investment portfolio management.
Knowledge of fund-of-fund investment models and alternative investment structures.
Early-stage investment experience including venture-stage investing.
Good understanding and appreciation of the balance between investment returns and economic and social development outcomes, and passion to pursue investment opportunities to achieve these two objectives.
Multi-country track record, across Sub-Saharan Africa.
Ability and track record of thinking outside the box in identifying opportunities to invest in financial markets.
Demonstrable creative thinker
Familiarity with major stakeholders in finance for early-stage companies, venture, debt and equity.
Experience in establishing and maintaining collaborative and trusted relationships with investees, other financiers and private sector players, and government counterparts, and development finance community.
Demonstrated skills in managing risk and ensuring investment returns
Experience with managing and reporting on complex structures
Ability to articulate market intelligence
Experience of working in a multi-cultural environment
Proficiency in French and/or local African languages an advantage
Responsive and agile in addressing changing market circumstances that may impact on investments.