Join Us As A Limited Partner
We are now accepting Limited Partners for our Sustainability Development Fund (SDF). In order to become a Limited Partner (LP), interested parties must satisfy the minimum requirement of a US$1 million buy-in along with the other criteria in our LP Agreement. The opportunity is best suited for limited liability companies, registered businesses, and business owners who are interested in sustainable impact investing.
Limited Partners own ordinary shares in OTIB, JA. Limited. They have minority voting rights at general company meetings. However, LPs have a combined majority voting right in some aspects of the SDF operations. This is in accordance with our ILPA model-based LP Agreement.
Limited Partners further benefit from a direct investment return, profit share agreement, which can be quite lucrative.
Copies of the governing Offering Memorandum, Limited Partnership Agreement and other supporting documents for this Limited Partner Buy-in were filed electronically with the Financial Services Commission of Jamaica on the 31st day of October 2023. Updated copies of the said documents will be sent to all interested parties upon OTIB, JA.’s receipt of the request along with the information required in the form below.
You may also speak to the GP Managing Director.
PRIVATE EQUITY
Limited Partnership.
A limited partner purchases shares in the company as an investment but is not involved in the day-to-day business. Limited partners cannot incur obligations on behalf of the company, participate in daily operations, or manage the operation.
Because limited partners do not manage the business, they are not personally liable for the company’s debts. Additionally, a limited partner’s loss from the company’s operations may not exceed the amount of the individual’s investment.
Our Fund
OTIB, JA.’s private equity fund is a limited partnership fund that is not listed on public exchanges. It has two components, an SDF and a GDF (the GDF is currently closed to new LPs).
Our fees include both management and performance fees. OTIB, JA. Limited is considered the general partner, while fund investors are referenced as limited partners.
The limited partnership agreement outlines the amount of risk each party takes along with the 3 – 10 years duration of the fund. Limited partners are only liable for up to the full amount of money they invest and are protected from market liability, while general partners are fully liable to the market.
Our private equity fund is an alternative investment class. The fund allows our investors to directly invest in leveraged options and acquire equity ownership in private companies. After a certain period of time within the fund’s duration, we will divest our holdings through any number of options, including initial public offerings (IPOs) and secondary sales to international private equity firms.
Our Fees
Our fees include a management fee and a performance fee.
The management fee has two components, a onetime fixed payment and an annual percentage fee.
– The onetime fee is paid at signing and forms part of the investment commitment.
– The percentage fee is an annual 1% of the capital committed to invest in the fund.
The management fee contributes to the fund’s operational and administrative fees including salaries, deal fees and anything needed to run the fund. As with other funds, the percentage component of our management fee is charged whether or not the fund generates a positive return.
The performance fee on the other hand is a percentage of the profits generated by the fund. This fee is 40% of investment profits above 10%. This is, therefore, contingent on the fund providing a positive return in excess of 10%.
Watch A Discussion About Private Equity Fees
Taken from AIC (2024)
Our SDF
OTIB, JA. Limited is currently building a twenty-five-million-dollar (US$25,000,000) private equity (PE) fund for sustainable and thematic impact investments in Jamaican and Caribbean enterprises. The fund, once fully built, will be used by OTIB, JA. for transparent private equity investments in a select cadre of local, regional, sustainable, positive impact ventures that meet our environmental social and governance requirements, as well as our impact investments’ strategic criteria.
The fund is OTIB, JA.’s Sustainability Development Fund (SDF).
The Value
OTIB, JA.’s Sustainability Development Fund will help suitable enterprises that struggle with financing and other developmental challenges. We will help them achieve sustainable growth while making a positive impact. Unlike traditional financial services, OTIB, JA.’s SDF solution leverages the environmental social and governance framework to guide its investments, ensuring that the sustainable growth that portfolio clients are led into, is both responsible and strategic.
The Objectives
One objective of OTIB, JA.’s SDF is to encourage inclusive growth in the Jamaican and regional economy. Both “inclusivity” and “growth” are key factors that characterize the development we wish to fund.
As a business support organization, we have had the privilege of sitting in seminars with micro business leaders and hearing their concerns with financing. We have interviewed and interacted meaningfully with entrepreneurs and small business owners about hindrances to their business development. We are informed about local businesses’ issues with exclusion, capital shortages, liquidity setbacks, unstable markets, profit losses and so on.
Inclusivity
The SDF strives for an inclusive portfolio of business clients. A portfolio that represents the unique demands of all men and women within underrepresented groups of corporations. This will include family-owned businesses, entrepreneurs with disabilities, rural entrepreneurs, youth entrepreneurs, research and development entrepreneurs, among others.
Growth
The SDF strives for medium- and longer-term economic growth for Jamaica and the Caribbean through improved business activities. Meaningful improvement, mandates sustainability. To ensure that sustainable business growth is achieved by portfolio clients, OTIB, JA. will take a hands-on approach to leading portfolio businesses. The probability of growth increases with leadership support, adequate financing and an ever-improving understanding of the local and regional business ecosystem.
Second objective of OTIB, JA.’s SDF is to encourage responsible, strategic growth as guided by the ESG Framework. Both pre-funding diagnostic tools and post-funding monitoring and evaluation matrices will be guided by the paradigm. “Environmental”, “social” and “corporate governance” concerns are key factors that characterize the development we wish to fund.
Environmental
The SDF strives for an environmentally friendly portfolio of business clients. A portfolio that is comprised of organizations that manage environmental impact and practice environmental risk management. These include practices pertaining to direct and indirect greenhouse gas emissions, stewardship over natural resources, resiliency against climate risks, among other factors.
Social
The SDF strives for a socially positive portfolio of business clients. A portfolio that is comprised of organizations that demonstrably develop positive relationships with stakeholders. That can be measured by human capital management metrics (like fair wages and employee engagement), interactions with external communities, and impact on supply chain partners, among other factors.
Governance
The SDF strives for a portfolio of well-managed business clients. A portfolio that represents the benefits of good corporate governance. This will involve some focus on leadership incentives, strategy alignment with stakeholder expectations, shareholder rights, internal controls, transparency and accountability, among other factors.
Sustainable Investment
Sustainable Finance is at the heart of OTIB, JA.’s Sustainability Development Fund. We are offering to build together with portfolio businesses, a better and sustainable future.
The Sustainable Development Goals, also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity. Jamaica has incorporated these goals into its own National Vision 2030.
With a collective ambition and by looking at portfolio businesses through the prism of their holistic impact on regional society, we will develop positive impact solutions to benefit all and progressively tackle the world ’s challenges. We will thereby help to develop a prosperous economy, grow internationally competitive businesses, and play our part in advancing the welfare of the whole human race.
OTIB, JA.’s Sustainability Development Fund (SDF).
