Project number:


Business sector:

Equity funds

Notice type:


Environmental category:


Approval date:

02 Dec 1997



PSD disclosed:

05 Nov 1997


Project Description

A private equity fund investing in the Black Sea region. The Fund started operations in 1998, with a focus on Bulgaria, Romania, Ukraine, FYR Macedonia, Russia, Georgia, Armenia, Azerbaijan and Moldova. Following the Fund’s good performance to date, a capital increase is currently being considered to allow further investment in the current region as well as expansion into FR Yugoslavia, Bosnia and Herzegovina, and Croatia.

The Fund will provide much-needed equity capital in the Black Sea region to medium-sized local enterprises and will support joint ventures, thereby facilitating foreign direct investment in the region. The Fund will make available to its portfolio companies a combination of management, financial and technical expertise, which will enable them to expand their operations and produce internationally competitive products on a commercially viable basis. The Fund will be one of the first private equity funds in the region to invest in FR Yugoslavia.

Transition Impact

The Fund will directly contribute to enhancing the entrepreneurship and efficiency of investee enterprises by providing an active ownership role, strong governance and transfer of know-how to privatised and private companies.

The Client

The Board of Directors approved the Black Sea Private Equity Fund in December 1997. The Fund is managed by an affiliate of Global Finance, a Greek private equity and venture capital firm. After four years of operations, the Black Sea Fund has successfully invested US$ 40.5 million of its US$ 62 million committed capital. The main investors, among which the Bank, the International Finance Corporation and AIG, are considering increasing their commitment to the Fund by participating in a pro-rata rights issue to bring the total Fund commitment to US$ 100 million. The capital increase will enable the Fund Manager to pursue unfolding opportunities in FR Yugoslavia as well as in its main focus countries.

EBRD Finance

The EBRD will increase its commitment to the Fund by US$ 12.26 million to bring it to a total of US$ 32.26 million.

Project Cost

Following the capital increase, the Fund will have a total size of US$ 100 million.

Environmental Impact

The Fund will follow the EBRD's Environmental Procedures for Investment Funds. In implementing these procedures, the Fund will assess potential environmental issues associated with its investments, which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements.

Technical Cooperation


Company Contact


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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