Emerging Europe Accession Fund

Location:

Regional

Project number:

39863

Business sector:

Equity funds

Notice type:

Private

Environmental category:

FI

Approval date:

12 Jan 2010

Status:

Signed

PSD disclosed:

01 Jun 2009

Project Description

The proposed project is a private equity fund, follow on to Balkan Accession Fund (BAF), dedicated to investing in mid-size private companies in Romania, Bulgaria, Turkey, Moldova and Ukraine. The Fund will seek to make equity investments and will also utilise mezzanine instruments with a view to best meet the requirements of mid-size businesses seeking growth.

Transition Impact

The proposed investment in Emerging Europe Accession Fund:

a) will be an important source of risk capital and mezzanine finance at a time where small and medium sized companies are suffering more than ever from lack of appropriate financial instruments;

b) will solicit in transfer of skills to portfolio companies, advice on improving company financial performance, as well as the implementation of international financial practices and corporate governance standards;

c) will set standards for business conduct. Experienced private equity managers can be instrumental for providing disciplined risk capital to fast growing private enterprises and introducing sophisticated financial tools and bringing on high corporate governance standards.

The Client

The Fund will be managed by Axxess Capital 3 N.V. a limited liability Company to be registered under the laws of the Netherlands Antilles, which will be owned by the management team.

The management team is well known to the Bank through EBRD investment in the Balkan Accession Fund, which is a predecessor fund and was established in 2006.

EBRD Finance

The Bank will commit to invest up to a maximum of EUR 40 million. It is expected that the investors may include a range of institutional investors including the International Financial Institutions that have backed BAF, banks and other private investors.

Project Cost

EUR 200 million.

Environmental Impact

The Fund shall comply with the EBRD's Performance Requirement 2 (Labour and Working Conditions) and Performance Requirement 9 (Financial Intermediaries. Investee companies will be required to comply, with national and EU environmental and OHS standards and national labour laws and the ILO's core labour standards, An Annual Environmental and Social Report will be prepared by the Fund and submitted to the Bank for approval.

Technical Cooperation

None.

Company Contact

Romania
Horia Manda
Managing Partner
Emerging Europe Accession Fund
Tel: +40 21 2077100
E-mail: horia.manda@bafund.net

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

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