Equity funds projects

Project Summary Documents

Project Summary Documents (PSDs) are disclosed for each project prior to Board consideration. They contain project descriptions, financial details, client information, environmental issues, tender guidelines, and contact details. PSDs for private sector projects are disclosed at least 30 days prior to Board consideration and for state sector projects, at least 60 days.

Project Summary Documents

Signed projects

Board approval is the final stage in the project approval process. After Board approval, the EBRD and the client sign the deal and it becomes legally binding. Signed project lists reflect year-end data.

Signed projects  (0.1Mb)

Case studies

Nizhpharm, pharmaceutical manufacturer, Russia

In 1998 Nizhpharm, a Russian producer of ointments, creams and suppositories, received a US$10m investment from Quadriga-managed St Petersburg and Central Russia RVF and Lower Volga RVF.

Like many Russian pharmaceutical manufacturers, Nizhpharm's product portfolio consisted of a number of established medications but lacked innovative generic pharmaceuticals, which could boost the company's growth.

The investment was used to acquire modern equipment and refurbish the production facilities according to the stringent European requirements which ultimately allowed full GMP certification, enabling the company to become the first Russian GMP-certified drug manufacture.

The new management has focused on four therapeutical classes and updated its portfolio with high marginal branded generics and the range of products by 40%. 

Own sourcing of new products from the company’s R&D centre was enhanced and supported with licensing of advanced drugs from foreign partners. Both sources have significantly strengthened the company’s growth potential. As a result , Nizhpharm’s portfolio is currently composed of 70% branded, promoted products and 30% high margin non-promoted drugs. The company enjoys one of the fastest new product-to-market introduction periods in the industry.

The reorganisation of the company's sales force has supported the introduction of the new product line and allowed expansion into neighbouring countries, such as Ukraine and Kazakhstan. 

Quadriga, together with the other key shareholders, have worked diligently over the previous five years to establish Nizhpharm as a leading branded and generic pharmaceutical producer in Russia with an average sale growth of 33%.

The combination of a top quality GMP certified production facility in Nizhny Novgorod and a comprehensive national medical representative and merchandising team, has ensured strong sales growth and excellent profitability margins. This, coupled with an excellent history of 100% accounting transparency and solid corporate governance principles, has enabled Nizhpharm to become one of the most praised assets of Russian pharmaceutical market. 

Saw Mill, Arkhangelsk, Russia

In 1996 EBRD and Norum (Cyprus) Ltd invested $2 million into Saw Mill No.3 in Arkhangelsk, acquiring a 30% stake. The company was loss-making. The investments installed a new boiler station enabling the company to shift from heavy fuel oil to forestry waste dry the end sawn good products. Other new equipment improved performance and quality.

Output tripled over the next 5 years. Using increased cash-flow, the company introduced new technologies and continued its reconstruction while most other saw mills faced severe production problems and decreasing output. The Fund Manager developed production technology, restructured organisation and ownership and encouraged better financial administration and regular reporting. Today, output capacity is 150,000 m3 and the company exports 80% to western Europe.

In 2002, the EBRD, Norum (Cyprus) Ltd and several other shareholders sold their majority stake to a strategic Russian investor on attractive terms. The saw mill's profitability, professional management, transparency, long audit history and clear development plan were key factors for investors.

Supporting the Polish pharmaceutical industry

Polfa Kutno S.A. was established in 1935 and has become one of Poland’s leading pharmaceutical companies. Following privatisation in 1995, the EBRD acquired a controlling stake via its participation in the Polish Private Equity Funds I and II and in conjunction with the Polish American Enterprise Fund.

Over the next 7 years, a restructuring process was implemented which focussed on new product development and quality improvement. This process involved divestment of non-core activities, recruitment of new CEO, CFO and Commercial Director, increased focus on high margin new products, development of 145 rep offices and construction of a modern production facility with EU Good Manufacturing Practices. As a result, Polfa Kutna received the GMP certificate confirming its compliance with the highest standard for product manufacturing and control.

The funds sold their stakes in 2003 to Polish pension funds at a cost multiple of 5.4x. In 2004, following profits of USD 8 million, Polfa Kutna made a public offer for the State Treasury’s 29.84% stake in another pharma manufacturer, Jelfa, and is spearheading consolidation of Poland’s healthcare sector.