Bancroft II L.P.

completed

Bancroft II will be formed by Bancroft UK Limited to achieve attractive investment returns through a portfolio of diversified companies in Central and Eastern Europe. The main investment focus will be on later-stage businesses, with proven management, strategic assets, and sizable exports or fast growth locally. Bancroft UK Limited will add value through active investment management, control or majority ownership positions, and board participation. Development Impact:The fund will contribute to the economic development of the region by supporting 10 to 15 companies who lack equity financing and managerial and strategic support to make them regionally and globally more competitive and therefore more attractive to other investors.After having grown strongly in the early to mid- 1990’s, private equity fund raising for the Central and Eastern Europe region has dropped sharply. The fund, using a disciplined and thorough investment approach, will help demonstrate that the private equity model can be successful in Central and Eastern Europe, attracting further private equity resources to the region. If private equity is successful, public markets are likely to become increasingly viable. IFC RoleOver the past year, the international and regional economic environment has deteriorated, decreasing investor confidence. IFC’s commitment to the fund will signal IFC’s support to private equity in Central and Eastern Europe at a time of increased investor anxiety and will enhance the fund’s credibility in markets where IFC has a strong active presence. It will also assist the fund with networking opportunities, and to achieve a critical economic size, maximize its impact and demonstration effect. IFC will be involved in strategic planning and governance issues of the fund. Among other things, IFC will be a member of the fund’s Advisory Committee, which will deal with governance issues at the fund level. Finally, IFC will play an important role in the definition of corporate governance and environmental standards at the investee company level, contributing to the sustainability of the fund’s investments.