Albanian American Enterprise Fund
Encyclopedia
Albanian-American Enterprise Fund (AAEF) is a non-political, not-for-profit US corporation established pursuant to the Support for East European Democracy Act of 1989 (“SEED Act”). It was incorporated in 1995 and maintains offices in New York
and Tirana
. It is located in Deshmoret e 4 Shkurtit, “Green Park” Complex, Tower 2, 12th Floor Tirana
, Albania
.
. To accomplish its mission, the AAEF invests and lends in a wide array of private enterprises, disseminates western business know-how, and, when appropriate, proposes changes to government policies affecting business. In addition, AAEF provides its portfolio investments with training to establish best business practices that incorporate acceptable financial reporting standards, as well as guidance in enhancing management capabilities and recruiting skilled personnel. The AAEF also provides its portfolio investments with corporate finance and strategic planning advice.
The United States Government provided AAEF's initial capital through a grant from the United States Agency for International Development. The original Board members were appointed by the President of the United States. The AAEF operates independently from the U.S. Government, and is managed by professional investment managers under the guidance of the Board of Directors.
The AAEF endeavors to identify and invest in enterprises that have good prospects of being commercially viable and are filling an under-served sector of the Albanian economy. Such investments should be capable of meeting international standards of “best business practices”, promote local manufacturing, create jobs and exports, and be environmentally safe.
Since its inception the AAEF has invested in or lent to over 40 Albanian companies. As of September 30, 2008, net assets of the AAEF amounted to $178 million or 6 times the original capital. Companies financed by AAEF have contributed more than $1 billion to the country's GDP and created more than 5,000 jobs.
Among the AAEF's notable investments are the modernizing of Tirana International Airport "Mother Teresa" and establishing the American Bank of Albania
(ABA).
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
and Tirana
Tirana
Tirana is the capital and the largest city of Albania. Modern Tirana was founded as an Ottoman town in 1614 by Sulejman Bargjini, a local ruler from Mullet, although the area has been continuously inhabited since antiquity. Tirana became Albania's capital city in 1920 and has a population of over...
. It is located in Deshmoret e 4 Shkurtit, “Green Park” Complex, Tower 2, 12th Floor Tirana
Tirana
Tirana is the capital and the largest city of Albania. Modern Tirana was founded as an Ottoman town in 1614 by Sulejman Bargjini, a local ruler from Mullet, although the area has been continuously inhabited since antiquity. Tirana became Albania's capital city in 1920 and has a population of over...
, Albania
Albania
Albania , officially known as the Republic of Albania , is a country in Southeastern Europe, in the Balkans region. It is bordered by Montenegro to the northwest, Kosovo to the northeast, the Republic of Macedonia to the east and Greece to the south and southeast. It has a coast on the Adriatic Sea...
.
Background
The AAEF was established as part of a United States initiative to promote the private sector development in formerly Communist countries in Europe and Central Asia. It invests solely in AlbaniaAlbania
Albania , officially known as the Republic of Albania , is a country in Southeastern Europe, in the Balkans region. It is bordered by Montenegro to the northwest, Kosovo to the northeast, the Republic of Macedonia to the east and Greece to the south and southeast. It has a coast on the Adriatic Sea...
. To accomplish its mission, the AAEF invests and lends in a wide array of private enterprises, disseminates western business know-how, and, when appropriate, proposes changes to government policies affecting business. In addition, AAEF provides its portfolio investments with training to establish best business practices that incorporate acceptable financial reporting standards, as well as guidance in enhancing management capabilities and recruiting skilled personnel. The AAEF also provides its portfolio investments with corporate finance and strategic planning advice.
The United States Government provided AAEF's initial capital through a grant from the United States Agency for International Development. The original Board members were appointed by the President of the United States. The AAEF operates independently from the U.S. Government, and is managed by professional investment managers under the guidance of the Board of Directors.
Activities
Although incorporated as a not-for-profit organization, the AAEF is managed as a private investment fund to maximize risk-adjusted returns. Investments can include loans, leases, guarantees, and equity ownership. Profits generated from AAEF investments are reinvested in new projects in Albania. In addition to recycling its profits to promote private enterprise creation and expansion, it is the AAEF's intent to demonstrate to other potential investors that investment in Albania can be successful and profitable. The AAEF strives to be a catalyst for additional private investment in Albania.The AAEF endeavors to identify and invest in enterprises that have good prospects of being commercially viable and are filling an under-served sector of the Albanian economy. Such investments should be capable of meeting international standards of “best business practices”, promote local manufacturing, create jobs and exports, and be environmentally safe.
Since its inception the AAEF has invested in or lent to over 40 Albanian companies. As of September 30, 2008, net assets of the AAEF amounted to $178 million or 6 times the original capital. Companies financed by AAEF have contributed more than $1 billion to the country's GDP and created more than 5,000 jobs.
Among the AAEF's notable investments are the modernizing of Tirana International Airport "Mother Teresa" and establishing the American Bank of Albania
American Bank of Albania
Intesa Sanpaolo Bank Albania was born on 2008 from the merger of two important Banks of the country Banca Italo-Albanese and the American Bank of Albania , both acquired from Intesa Sanpaolo Group....
(ABA).