Balkan Accession Fund C.V.

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The proposed project is a private equity fund, dedicated to investing in mid-size private companies that are strategically positioned to capitalise on the economic growth of the second-wave of EU accession countries, primarily in Romania and Bulgaria. The Fund reached its First Close in January 2005; the Second Close is expected to take place in September 2006 with a target total capital commitment of up to EUR 100 million (with a maximum size of EUR 125 million). The Fund Manager has over ten years of investment activity in the region while managing the Romanian-American Enterprise Fund and the Bulgarian-American Enterprise Fund. The proposed investment in BAF will: a) support the development of an independent and technically first time fund manager who has the potential to become a well performing niche financial intermediary in financing medium-sized companies; b) support the development of a number of companies in the second wave accession countries by providing scarce equity finance, financial and other expertise; and c) help attract funding from investors new to the Region. The Balkan Accession Fund C.V. is a Netherlands Antilles limited partnership, dedicated to investing primarily in Romania and Bulgaria. The primary Sponsor is the Romanian-American Enterprise Fund and has committed EUR 40 million, which makes it the Fund’s largest shareholder. The Bank has made an equity commitment of EUR 22 million, or 20% of total aggregate capital commitments of the Fund. The Romanian-American Enterprise Fund, the Bulgarian-American Enterprise Fund, the Netherlands Development Finance Company (FMO) and Deutsche Investitions und Entwicklungsesellschaft mbH (DEG) are co-investors in the Fund. EUR 110 million. The Fund will follow the EBRD's Environmental Procedures for Private Equity Funds. In implementing these procedures, the Fund will assess potential environment, health, safety and labour issues associated with its investments which are required to comply, at a minimum, with local/national health, safety, labour, environmental and public consultation requirements. None. Romania Horia Manda Managing Partner Balkan Accession Fund Tel: +40 21 2077100 E-mail: horia.manda@bafund.net