Alpha CEE II L.P.

repaying

The proposed project envisages commitment of up to EUR 50 million to the Alpha CEE II, L.P., a EUR 300 million diversified regional private equity fund-of-funds dedicated to Central and Eastern Europe. The General Partner is Alpha Associates, a fund manager currently managing 5E Holding, its first Central and Eastern European fund-of-funds. The Fund has a threefold investment strategy, whereby it will seek to: (i) make primary commitments to new private equity funds; (ii) purchase interests in existing private equity funds in the secondary market; and (iii) make direct investments. The proposed transaction aims to support an under-developed investment product in the region, that of the fund-of-funds, which has been a feature of western private equity markets for many years. Many of the region’s private equity teams still rely significantly on public funding institutions, and the financial and demonstration effects of a successful launching of Alpha CEE II will be an important step forward for this asset class. Alpha Associates was formed in April 2004 to assume the third-party private equity business of Swiss Life Private Equity Partners. The Alpha team has worked together in private equity for several years and currently manages USD 318 million in private equity assets in the form of three investment funds, one of which is also a fund-of-funds dedicated to the region. The EBRD commits to invest up to EUR 50 million in equity in Alpha CEE II. The Fund’s target size is EUR 300 million. Up to EUR 50 million. Alpha CEE II will be making investments on three levels (primary, secondary and direct), which will lead to varying degrees of control over environmental issues. In order to ensure that all environmental risks are mitigated, Alpha will appoint an Environmental Coordinator who will have overall responsibility for environmental risk management during the life of Alpha CEE II. The Environmental Coordinator will ensure that the Fund and its portfolio investments will carry out operations in accordance with the EBRD's Environmental Procedures for Private Equity Funds, which have been tailored for funds-of-funds. The Procedures include compliance with the Bank's Environmental Exclusion List and Referral List. The Fund will be required to submit annual environmental reports to the EBRD. Investee funds / companies will be required to comply, at a minimum, with all applicable national regulations and standards for environment, health, safety, labour and public information/consultation requirements. None. Petra Salesny, COO ALPHA Associates AG Talstrasse 66, PO Box 1081 CH-8039 Zurich, Switzerland E-mail: petra.salesny@alpha-associates.ch