In terms of coordination between CFYE and DIFYE we expect the following:
- We require the proposers to indicate that the fund will be open to considering applications from CFYE graduates. The ultimate investment decision sits within the governance structure of the investment fund and thus is independent of CFYE.
- We encourage close co-ordination with the challenge fund to spot opportunities for co-operation. Fund managers can make several suggestions, but we would expect that this involves some degree of participation of the investor on the grant committee and an LPAC seat for the CFYE in the DIFYE. Regarding the latter: bids received on calls for the Challenge Fund could be considered either:
a. straight for investment (possibly in combination with a grant and/or technical assistance);
b. scored as interesting in the future,
c. scored as potentially interesting provided a number of key issues are addressed or;
d. scored as little investment opportunity potential.
In this way, we expect that the CFYE will serve as a part of the pipeline for the DIFYE.
Furthermore, the CFYE is open to explore other possibilities of joint sourcing of pipeline through our network or through more pro-active participation of the fund manager in a specific call for proposals.
- The investment fund is expected to also consider investment proposals outside of the Challenge Fund. The Challenge Fund can bring in additional expertise where relevant such as on impact and measurement, local context, and possibilities to increase the social impact of the program.