DAC China Special Opportunity and Situation Fund, L.P.

completed

_x000C_The project involves IFC investments in entities as follows: DAC China Special Opportunity and Situation Fund, L.P. (DAC Fund, or the Fund): The DAC Fund is a closed-end fund, formed by DAC Investment Partners II LLC (DAC) and managed by DAC Financial Management (China), Limited (the Investment Advisor, or the Manager), with a maximum size of $500 million, which will make privately negotiated investments in the People’s Republic of China (China) consisting of portfolios of multi-credit non-performing loans (NPLs) as well as other distressed and non-performing assets such as real estate and equity positions (NPAs) in China. The Fund expects to principally target portfolios of NPLs with a purchase value of between $5 million and $250 million from China’s four asset management companies (AMCs) (as well as directly from Chinese banks when the regulations are amended to permit this and from local Chinese government entities where appropriate). IFC will also have an option to invest up to 20% of total capitalization or up to $300,000 in DAC Financial Management (China) Limited, which is investment advisor to the Fund and owns 100% of nationally licensed servicing company (Gao Fei).