Investment of up to US$ 20 million in a private equity fund, which will invest in small and medium-sized enterprises (SMEs) principally in Poland but also in other EBRD countries of operations. The Fund will be structured as a Delaware limited partnership.
The EBRD's key objectives in supporting the Fund are:
to deliver much-needed wholesale equity to SMEs which are too small for the Bank to finance in its normal direct operations;
to support the development of a small but successful indigenous fund manager; and
to benefit financially from the expected growth in value of the Fund's portfolio.
The facility will allow Innova to increase the scope and range of its investment activities and hence provide additional equity finance to SMEs in the region.
By supporting the development of Innova, the EBRD will be assisting the development of the indigenous asset management industry in central Europe and therefore enhancing local financial intermediation and creating a more permanent capacity to import scarce equity capital.
Innova's continued operations will also benefit the market generally by providing an increased level of competition in the local private equity market.
The Fund will be managed by Innova LLC, a successor to Poland Partners' management company, which aims to raise between US$ 65 million and US$ 150 million for the Fund.
It is proposed that the Bank will invest as a limited partner with an amount equal to the lesser of US$ 20 million and 20 per cent of the Fund's committed capital.
US$ 150 million (ECU 133 million).
Innova will follow the EBRD's environmental procedures for investment funds. In implementing these procedures, Innova 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.
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Text of the PIP