Regional/Private Equity Fund Co-Investment Facility

Location:

Regional

Project number:

10248

Business sector:

Equity funds

Notice type:

Private

Environmental category:

FI

Target board date:

27 Jun 2000

Status:

Board Approved

PSD disclosed:

05 Jun 2000

Sub-projects signed under this framework

Project Description

The original co-investment facility of USD 73.5 million was set up in June 2000 and subsequently increased to USD 193.5 million. The Facility enables the Bank to co-invest alongside its portfolio private equity funds, as well as other funds of good standing and established track record in the countries of operations. The Facility’s average transaction size is €2 million to €10 million.

To date, fifteen projects have been signed under the Facility in eight countries (Hungary, Poland, Romania and Bulgaria, Russia, Lithuania, Serbia and Kazakhstan) in a wide range of industry sectors.

The EBRD is now considering an expansion of the Facility by an additional USD 140 million to be allocated in the course of a four-year period (June 2013).

Transition Impact

The Facility is expected to improve the Bank’s ability to provide equity in smaller amounts than the Bank would normally consider. The Facility can be regarded as a platform for how the Bank can assist the underlying investments of private equity funds, particularly, through the current difficult market environment.

Funds under the Facility will be provided to companies selected by professional investment managers who have local management teams, focused investment strategy and an active approach to management and governance of the portfolio companies. Hence the investments are expected to provide not only growth capital but also value-added shareholding, which has a positive impact on the corporate decisions and management of the investee companies.

The Client

i) Portfolio companies in private equity funds in which the Bank has invested; or

ii) Portfolio companies in private equity funds in which the Bank has not invested but which funds have a proven track record and good reputation;

or

iii) Potential portfolio companies in private equity funds which have not yet had first closing and the Bank has committed to invest.

The Bank will not invest into the funds themselves under this Facility.

EBRD Finance

Expansion of the Facility by a further USD 140 million to be invested over a four year period ending in June 2013.

Project Cost

USD 140 million for Phase III.

Environmental Impact

The funds are required to comply with the Bank's Performance Requirements (PRs) 2 and 9, including adherence to the Bank's Environmental and Social Exclusion and Referral Lists. Funds should provide the Bank with annual environmental and social reports. Investee companies are required to comply, at a minimum, with national environmental, health, safety and labour standards. To date the Bank has relied on the environmental and social due diligence undertaken by the funds, which are applying the Bank's Environmental Procedures for Private Equity Funds. This practice should continue for this extension.

Technical Cooperation

None.

Company Contact

Galia Amirova, Operation Leader: amirovag@ebrd.com
Alessandra Pasian, Operation Leader: pasiana@ebrd.com

 

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.