Direct equity investment

Direct equity investment

EBRD invests in equity and quasi-equity (preferred equity/subordinated debt), as well as being a provider of senior debt.  Since inception, it has invested more than €15 billion of equity into over 800 companies, making it one of the largest equity investors in its region.

EBRD is primarily a minority investor providing private equity for growth stage companies, but it can invest in a range of other situations from pre-privatisation to Initial Public Offering (IPO), as well as working with private equity investors in change of control transactions.

Investment terms

  • Preferred investment range between €20m and €100 million.  Smaller investments can be considered, but are more likely to be structured as self-liquidating mezzanine finance
  • EBRD’s equity shareholding usually in the range 15-35% for corporate sector deals, 5-15% for Financial Institutions/larger infrastructure investments.
  • Preferred investment period is 4-7 years
  • Flexible financing offer can include equity and quasi-equity (EBRD will not usually process a debt transaction at the same time as an equity transaction, but debt and equity exposure to the same company is possible)
  • Clear prospect of exit through joint sale with other shareholders to a third party, or sale back to existing shareholders e.g. via put option

Project requirements

  • Experienced sponsors and management with a proven track record
  • Good prospects for the company in relevant local/regional markets
  • Sound financial basis and well-structured financing plans
  • A credible business plan
  • Realistic entry valuation
  • Willingness to share corporate governance including EBRD Board membership and a role for EBRD in key strategic decisions
  • Realistic exit strategy that will provide a performance based return for the EBRD
  • Prospective investment returns which are appropriate to equity and commercial risk

Contact

Ilker Yoney
Director, Equity Partner
Tel: + 44 20 7338 8381
Email: yoneyi@ebrd.com