Tunisian-american Enterprise Fund

What it reported doing in 2024

In 2024, taef continued our work of finding and investing in tunisia's most promising small and medium sized entrepreneurs. We worked closely with existing investees while seeking new opportunities for growth. Taef investment strategy taef's tailors proven, innovative financing mechanisms to meet the needs of tunisian entrepreneurs and to address gaps in the country's small and medium sized enterprises (sme) financing environment. Taef seeks talented entrepreneurs and business people as partners who bring strong experience, commitment and vision for growth to their companies. Taef invests in smes throughout their life cycle from start-up to early growth and maturity up to succession. We invest: - directly in smes through two platforms: our own dedicated fund for smes in growth stage (tasme), and our search fund for smes in succession stage (tasf) - in partnership with tunisian investment firms as a complement to tasme's work and a way to provide equity or private debt infusions to businesses - in microfinance institutions that reach the smallest of tunisia's business owners - in digital technology and knowledge-based start-ups through an integrated platform: an accelerator flat6 labs and venture capital investment vehicle anava seed fund. Tasme: mezzanine & royalty based financing for tunisian smes tasme offers unique financing to tunisian smes with a combination of debt and equity tailored to their needs. Tasme seeks well run companies in value-adding sectors expected to have strong growth. Through tasme, taef has created a unique financing platform, built a talented team, and expanded tunisia's domestic sme financing. At the end of 2024, tasme had invested in 21 companies in a large variety of sectors with investment tickets averaging $1.1m. The team also continued to work closely with existing portfolio companies as they navigate challenges and prepare for exits. Tasf: tunisia's first search fund taef adapted the us search fund model to tunisia to match the needs of mature business owners looking for succession plans for their companies with seasoned managers who have the skills to grow the business. Tasf catalyzes entrepreneurship through acquisition. Our first searcher completed the acquisition of propann, a company that produces manufactured board for furniture and interior finishing in 2019. Since acquisition, he has upgraded and optimized operations, refined the company's strategy with attention to product mix, developed new sources for raw materials, and worked on creating new markets locally and internationally. In 2024, propann and its strong management continued to perform well in a challenging environment.fund of funds investments: strengthening tunisia's investment ecosystem taef believes that a strong sme financing ecosystem made up of diversified investment vehicles with talented management teams is essential to drive economic growth and generate impact. By investing alongside others, taef has leveraged our funds to achieve greater impact and to expand financing options available to talented entrepreneurs investing in growth. Tuninvest croissance (tc), a single country fund created in 2013, provided growth capital to 10 tunisian smes. Fully invested since 2016, tc works actively with investees as they move towards exit. At the end of 2024, five exits had been finalized, three are planned for exit in 2025, and one for later in 2026. Inma holding, a new fund, was seeded by taef in 2017 to expand sme investment options in tunisia. By the end of 2024, inma holding had invested in 5 companies and successfully exited from one, generating a 13.9% irr. Taef expects to continue to support these fund investments as they exit initial investments, manage ongoing active investments, and develop managerial talent. Inma finance: tunisia's first private debt fund taef co-created inma finance, the first private debt vehicle in tunisia. This fund was created in direct response to sme's expressed needs for an alternative to the t

Financial Efficiency

• Mission deployment rate: Limited
• Program expense ratio: 46.1%; rating input score 46
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 92.9%; rating input score 93; 25th percentile among comparable filings
• Pay-setting controls: 1 of 6 controls in place; rating input score 17
  • Compensation committee: Missing
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Missing
  • Board or committee approval: Pass
• Foreign activity oversight: 1 of 8 controls in place; rating input score 12
  • Claims monitoring procedures: Pass
  • Requires narrative reports: Fail
  • Conducts field audits: Fail
  • May suspend future funding: Fail
  • Requires financial reports: Fail
  • Conducts site visits: Fail
  • Requires grant agreements: Fail
  • May require repayment: Fail
• Grant itemization coverage: 100%; rating input score 100; 80th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 100%; rating input score 100; 64th percentile among comparable filings
• Governance controls: 9 of 9 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: -803.3%; rating input score 6; 6th percentile among comparable filings
• Total-asset coverage ratio: 58.03; rating input score 92; 92nd percentile among comparable filings
• Liabilities to assets ratio: 0.04; rating input score 22; 22nd percentile among comparable filings
• Officer compensation ratio: 56.2%; rating input score 6; 6th percentile among comparable filings

Growth

• Program expense growth: 6.7% per year; rating input score 100; 70th percentile among comparable filings
• Revenue growth: -2.3% per year; rating input score 0; 51st percentile among comparable filings
• Asset growth: 22.8% per year; rating input score 100; 92nd percentile among comparable filings