Baltcap Private Equity Fund II

signed

The EBRD is considering an investment of up to EUR 20 million to BaltCap Private Equity Fund II (the “Fund”). The Fund will invest in equity and equity-related securities of small or medium sized enterprises (“SMEs”) and Small Mid-Cap enterprises (“SMCs”) in Estonia, Latvia and Lithuania (the “Baltics” or “Baltic States”). The transition impact of the proposed project would come from the following areas: (i) the Fund will facilitate improved access of SMEs and SMCs in the Baltics to equity capital and provide wider demonstration of the attractiveness of private equity financing; (ii) the regional buy-and-build strategy of the Fund will facilitate much needed consolidation of SMEs and SMCs in the Baltics and promote their 'regionalisation'’; this will also demonstrate to other private equity funds and companies the viability of a cross-border consolidation strategy in the Baltics; (iii) the Fund will promote high standards of corporate governance and integrity at the level of the Fund and the investee companies. BaltCap is a leading private equity and venture capital fund manager in the Baltics, investing in the region since 1996. The Bank will invest up to EUR 20 million. The target size of the Fund is EUR 100 million. Categorised FI. The Fund will be required to comply with EBRD Performance Requirements 2 (Labour and Working Conditions) and 9 (Financial Intermediaries) and implement the EBRD's Environmental and Social Procedures for Active Equity Investments. The Fund will be required to submit an annual environmental and social report to the Bank. None. Martin Kõdar Managing Partner martin.kodar@baltcap.com Tartu mnt. 2, 10145 Tallinn, Estonia Tel: +372-6650-280 Fax: +372-6650-281