Provided by Leslie Cummins and Peter Tropper of the
International Finance Corporation
In this section you will learn more about:
Objective of Disbursements
- Disburse capital for investment purposes into the Fund’s Investees.
Back to Top
Issues to Consider
- Check legal agreements for what may be stipulated there concerning disbursements
- Who within the Fund Manager is responsible for handling the disbursement request, and is responsible for approving the disbursement from the Fund? What are your Fund Manager’s internal approval processes for cash flows to and from the Fund? Who receives copies?
- Is the Investee’s draw down notice satisfactory? Does it provide sufficient information about intended use of the capital, account details, timing specifications?
- Are other Funds or investors co-investing into this Investee alongside your Fund? Are they ready to disburse on time?
- Ensure that your Investee puts the disbursed capital to its intended use. Monitor that your Investee has sufficient internal checks and balances in place to prevent misuse of capital.
Back to Top
Documents
- Draw down notice received from Investee (e.g. for Rights Issue, Round C)
- Any correspondence with the Investee regarding the disbursement should be recorded in workflow processes
Back to Top
Back to Toolkit Main Page
Copyright © 2003 - 2006, International Finance Corporation. All Rights Reserved.