Baring Vostok PEF

Location:

Regional

Project number:

13946

Business sector:

Equity funds

Notice type:

Private

Environmental category:

FI

Target board date:

03 Oct 2000

Status:

Complete

PSD disclosed:

01 Aug 2000

Project Description

A private equity fund that will make direct equity investments in medium-sized companies, primarily in Russia and Ukraine, but also in other countries of the former Soviet Union. The target size for the fund is US$ 150 million, with a maximum of US$ 250 million.

The EBRD approved US$ 50 million financing for the initial project in October 2000. It is now considering a US$ 15 million additional capital commitment, to be reviewed by the Board in November 2001.

The fund will acquire controlling or sizable minority (10-50 per cent) stakes in medium sized companies, and actively manage these investments (e.g. by increasing sales and market share), with the aim of selling them within two to five years, at a high rate of return.

 

Transition Impact

The fund is expected to make a significant transition impact on the investee companies via active management and restructuring of their operations. Through the existing First NIS Regional Fund SICAV, the investment adviser has demonstrated its ability to successfully transform poorly performing companies with new management, improved financial controls, more effective sales and marketing, and enhanced corporate governance.

The Client

The fund is a limited partnership registered in Guernsey. The sponsor is Baring Private Equity Partners, part of the ING Group; the investment adviser is a subsidiary, Baring Vostok Capital Partners, with affiliate offices in Moscow and Kiev.

EBRD Finance

The EBRD will commit the lesser of US$ 65 million (€73 million), or 35 per cent of the Fund.

Project Cost

The target size of the fund is between US$ 150 million (€168 million) and US$ 250 million (€281 million).

Environmental Impact

The fund will comply with the EBRD’s Environmental Guidance Procedures for Private Equity Funds. In order to follow these procedures, the fund will assess the potential environmental issues relating to its investments. These investments must, at a minimum, comply with local and/or national environmental, health, safety and public consultation requirements.

Technical Cooperation

None.

Company Contact

Investment adviser:
Mr Michael Calvey
Baring Vostok Capital Partners
Uspenski pereulok 10
Moscow 103006, Russia
Tel: +7 095 967 1307

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.