Establishment of the first dedicated mezzanine fund operating in Poland, Hungary, the Czech Republic, the Slovak Republic and Slovenia (the EU accession countries). The fund will make mezzanine and associated private equity investments in unquoted companies in the EU accession countries. The target market for the fund will be more mature companies with the following characteristics: (I) established businesses with sustainable market share; (ii) operations with predictable cash-flow, low cyclically, competitive cost base and typically with sales in excess of €25 million; (iii) proven management team. The fund does not target a narrow range of specific industries, although the investment managers recognised that sectors such as contract services, healthcare, information technology, light industry, media and related might be particularly attractive.
The project will demonstrate a new financial instrument in the EBRD’s countries of operations. This will be in the form of pure mezzanine (either in support of a private-equity backed acquisition or in a capital restructuring) or a mixture of mezzanine and private equity which will likely have spill-over effects on the provision of other forms of capital and the development of local financial markets.
Transition impact will also derive from setting standards of financial management in the investee companies. Due to the nature of the mezzanine instrument and the appointment of a representative on the board of investee companies, the Fund will be able to track very closely the financial performance of the companies and advise on financial management. This is expected to result in substantial knowledge transfer not only at investee company level, but also more widely in the financial and legal community in the countries where the Fund will be investing.
The Accession Mezzanine Capital LP, is a limited partnership organised under the laws of England for the purpose of making pure mezzanine investments, or a mixture of mezzanine and private equity investments in private unquoted companies in the EU accession countries. The main country focus will be in Poland, Czech Republic and Hungary whose economies are rapidly converging with EU economies and are expected to maintain a relatively stable growth over the medium to long-term. Mezzanine Management Central Europe Ltd will manage the fund.
Up to €37.5 million of the capital of the fund.
The fund will have a maximum target for all subscriptions of €150 million at final closing.
The fund manager will implement the EBRD’s Environmental Procedures for Private Equity Funds, which will facilitate the identification, mitigation and monitoring of environmental issues associated with investments across the region. The fund manager will further ensure that no investments are made in companies included on the EBRD’s Environmental Exclusion List. Investee companies will be required to adhere, at a minimum, to local/national health, safety and environmental regulations and standards.
For business opportunities or procurement, contact the client company.
The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP