Regional/Private Equity Fund Co-Investment Facility

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