CEE Special Situations Fund

Location:

Regional

Project number:

39103

Business sector:

Equity funds

Notice type:

Private

Environmental category:

FI

Target board date:

21 Oct 2009

Status:

Disbursing

PSD disclosed:

07 Aug 2008

Project Description

The EBRD is considering investing up to 20% of total commitments, not to exceed EUR 20 million, in a regional private equity fund with a target size of EUR 150 million.

The Fund’s objective is to provide superior returns from under-performing and distressed equity and debt investments in Central and Eastern Europe. In addition to direct control equity investments and non-performing debt instruments, the Fund will invest in limited partner interests in stranded or end-of-life private equity funds and other special situations, including non-core divestitures, strategic bankruptcies, shareholder disputes, and unsuccessful mergers and expansions.

The Fund's sponsor is CRG Partners LLC, a leading turnaround and restructuring firm in the USA.

Transition Impact

The Fund will support the restructuring and development of private companies in the region by adopting a hands-on approach and transferring operational and strategic expertise and know-how.

The transition impact of the proposed project will be most pronounced in the following four areas:

(i) introduction and development of a distressed fund model within the region;
(ii) positive impact on underperforming companies with an uncertain future through implementing turn-around and restructuring practices;
(iii) demonstration effects of new ways of financing and of successful turnaround of companies and
(iv) improved corporate governance within companies.

The Client

CRG Capital CEE Special Situations Fund is to be established as a Jersey limited partnership. It will be sponsored by CRG Partners LLC (USA) and managed by CRG Jersey GP Ltd (Jersey), a limited liability company organised under the laws of Jersey. The Fund’s investment advisor will be CRG Capital GmbH, based in Vienna.

EBRD Finance

The EBRD proposes an equity investment of up to EUR 20 million but not exceeding 20% of the total aggregate capital commitments.

Project Cost

Target size of the Fund is EUR 150 million.

Environmental Impact

The Fund will implement environmental procedures based on the EBRD’s Environmental Procedures for Private Equity Funds which includes adherence to the Bank’s Environmental Exclusion and Referral List. Investee companies will be required to comply, at a minimum, with all applicable national requirements for environment, health and safety, labour standards and public information/consultation requirements. The Fund will be required to submit an Annual Environmental Report to the EBRD.

Technical Cooperation

None.

Company Contact

Parham Pouladdej
Managing Director
CRG Capital
Wipplingerstrasse 25
A-1013 Vienna

Tel: +43 (1) 532 04 66 422
e-mail: parham.pouladdej@crgpartners.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

General enquiries

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Public Information Policy (PIP)

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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.