SEAF Caucasus Growth Fund

Location:

Regional

Project number:

41046

Business sector:

Equity funds

Notice type:

Private

Environmental category:

FI

Approval date:

31 Jan 2012

Status:

Signed

PSD disclosed:

15 Dec 2011

Project Description

The EBRD is considering an equity investment of US$ 10 million in the SEAF Caucasus Growth Fund (the “Fund”). The proposed project will be the first institutional-quality private equity fund in the Caucasus.

The Fund will provide debt, equity, and mezzanine capital to small and medium sized enterprises in Georgia, Armenia and Azerbaijan (the “Caucasus”) with the objective of achieving long term capital growth.

The Bank’s participation will ensure that the Fund achieves a viable first closing to be able to execute the investment strategy.

Transition Impact

The transition impact and demonstration effects associated with this potential investment are expected to include:

1. Development of the private equity sector in the Caucasus by supporting the first institutional quality private equity fund with the potential to serve as a long-term provider of private equity capital for SMEs;
2. Providing valuable support to portfolio companies in developing their business strategies and implementing best practices in financial reporting, corporate governance, and transparency.

The Client

SEAF Caucasus Growth Fund is a Cayman Islands exempted company with limited liability. The Sponsor of the Fund is Small Enterprise Assistance Funds, a not-for-profit corporation, incorporated in New York.

EBRD Finance

The Bank will commit to invest the lesser of US$ 10 million or up to 25% of the Fund.

Project Cost

The target size of the Fund is US$ 50 million.

Environmental Impact

The Fund shall comply with the EBRD Performance Requirements 2 and 9, implement and comply with the EBRD Environmental and Social Procedures for Active Equity Investments and ensure investee companies comply with national environmental and Occupational Health and Safety standards. The Fund will be required to adhere to the EBRD's Environmental and Social Exclusion and Referral lists. Investee companies will be required to comply, at a minimum, with national requirements for environment, social health and safety, and labour standards.

The Fund will submit an annual Environment & Social Report to investors and the IFIs combined Environmental and Social Exclusion list will be included into the legal documentation.

Technical Cooperation

None.

Company Contact

Hubertus (Bert) J. van der Vaart
E-mail: bert@seaf.com
Tel: +1 (202) 737-8463

Business opportunities

For business opportunities or procurement, contact the client company.

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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