Emerging Europe Convergence Fund II

Location:

Regional

Project number:

36167

Business sector:

Equity funds

Notice type:

Private

Environmental category:

FI

Target board date:

26 Jul 2005

Status:

Repaying

PSD disclosed:

24 Jun 2005

Project Description

The proposed project is a private equity fund with a target size of EUR 500 m that will invest in markets of the new European Union members, the EU accession candidate countries, other SEE countries as well as CIS such as Russia and Ukraine. The Fund will seek control or substantial minority positions in companies with enterprise values between EUR 100 m and EUR 1 bn and will seek to generate in excess of 25% gross IRR for the whole Fund. The track record of the fund management team is based on the success of the AIG Emerging Europe Infrastructure Fund.

Transition Impact

The transition impact effects of an investment in the Fund can be considered from three aspects:

(i) demonstration effects of successful investee company restructuring

(ii) demonstration effects of new ways of financing activities

(iii) institution building.

The Fund will add value to the portfolio companies of the Fund by active participation in their management and operations and transfer their knowledge and experience to the portfolio companies.

As there are not many precedents for private equity in some of the target countries, the Fund will also fulfil an educational role by creating awareness and winning acceptance for this form of financing.

 

The Client

Emerging Europe Convergence Fund II LP is a private equity fund to be established in Guernsey. EMP Europe Management (CI) LP will be the General Partner and Fund Manager. Mid Europa Parners LLP will be retained by EMP Europe Management (CI) LP as the Investment Manager.

EBRD Finance

EBRD will commit up to 10% of the total aggregate capital commitments of the Fund.

Project Cost

Target size of the Fund is EUR 500 million.

Environmental Impact

The Fund will apply the EBRD's environmental procedures for Private Equity Funds which ensures adherence to the Bank's Environmental Exclusion and Referral List, that appropriate environmental due diligence is carried our prior to investment, that investee companies meet, at a minimum, national standards for environment, health, safety and labour.

Technical Cooperation

None.

Company Contact

Thierry Baudon, Managing Partner

161 Brompton Road
London SW3 1EX

Phone: +44 (0) 20 7886 3600
Fax: +44 (0) 20 7886 3639

 

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.