VALUE GROWTH FUND

Location:

Slovak Republic

Project number:

24838

Business sector:

Equity funds

Notice type:

Private

Environmental category:

FI

Approval date:

23 Jul 2002

Status:

Completed

PSD disclosed:

20 Jun 2002

Project Description

The Bank is contemplating to become one of the anchor investors in the Value Growth Fund (VGF), an equity fund targeting restructuring opportunities in the manufacturing/services industry in the Slovak Republic. The Fund will acquire control positions in financially distressed companies at either pre- or post-bankruptcy stage, invest additional funds, and actively manage the companies by providing top managers and transfer lacking skills. The Fund will exit via sales to trade buyers.

Transition Impact

VGF will contribute to the restructuring of the Slovak corporate sector by (i) expanding availability of capital and transferring management skills to investee companies; and (ii) re-launching companies in temporary distress (but showing a potentially attractive combination of product/market/skills) into the full productive cycle, thus providing the basis for a future increase in employment and attracting foreign direct investment.

The Client

VGF, investing in highly leveraged firms requiring financial and/or managerial restructuring based in Slovakia, will be managed by a General Partner established by Value Management Services, an Austrian domiciled fund management company specialising in turnaround situations. The General Partner will provide active and intensive turnaround management to the investee companies.

EBRD Finance

The Bank will commit itself to participate as a core investor in VGF by investing about €5 million at the first closing and up to 35 per cent of total Fund commitments at the final closing.

Project Cost

The target size of the Fund is €30 million, with first closing expected in September 2002, with minimum commitments of €14 million.
In addition to the EBRD, Slovak – American Enterprise Fund and Raiffeisen Zentralbank Osterreich AG will become the anchor investor to the VGF. Other Slovak local banks have also expressed their interest to invest at first closing.

Environmental Impact

VGF will follow the EBRD's Environmental Procedures for Investment Funds. In implementing these procedures, the Fund 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.

Technical Cooperation

None.

Company Contact

 
 

Business opportunities

For business opportunities or procurement, contact the client company.

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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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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