Avallon MBO Fund II

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The proposed project, Avallon MBO Fund II, is a specialised private equity fund with the objective to invest primarily in management buy-out and management buy-in transactions. The Fund will invest predominantly in Poland with up to 33 per cent in other new EU member states. The Fund will seek to acquire controlling interests in small to medium-sized companies while investing its capital alongside management teams, empowering managers and supporting the expansion of private ownership. It is expected that individual equity investments will be between EUR 5-10 million (with the average value of investment of approximately EUR 7-8 million). The transition impact of the proposed project would come from the following areas: Avallon MBO Fund II will be established as a limited liability partnership, registered in the Netherlands. It will be managed by its general partner, Avallon Partners II B.V., a Dutch limited liability company. Founded in 2001 by three partners, Avallon grew to become a specialised consulting firm advising on MBO transactions whilst also making its own proprietary investments. In 2007 it raised an institutional quality private equity fund investing in MBO transactions. Avallon MBO Fund II will be its second fund. The EBRD is considering a commitment of up to €27 million to the Fund. It is expected that the remaining commitments may include a range of institutional investors, as well as commitment from the General Partner. The target size of the Fund is €107 million with a hard cap of €120 million. Categorised FI. The Fund will be required to comply with EBRD's Performance Requirement 2 (Labour and Working Conditions) and Performance Requirement 9 (Financial Intermediaries). Investee companies will be required to comply with national environmental and OHS standards and national labour laws. An Annual Environmental and Social Report will be prepared by the Fund and submitted to the Bank. None. Mr. Tomasz Stamirowski, Managing Partner Avallon MBO Fund Al. Kosciuszki 17 90-418 Lodz Poland Tel: +48 (42) 630 97 71 Fax: +48 (42) 630 97 75 Email: t.stamirowski@avallon.pl