Emerging Europe Convergence Fund II

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The proposed project is a private equity fund with a target size of EUR 500 m that will invest in markets of the new European Union members, the EU accession candidate countries, other SEE countries as well as CIS such as Russia and Ukraine. The Fund will seek control or substantial minority positions in companies with enterprise values between EUR 100 m and EUR 1 bn and will seek to generate in excess of 25% gross IRR for the whole Fund. The track record of the fund management team is based on the success of the AIG Emerging Europe Infrastructure Fund. The transition impact effects of an investment in the Fund can be considered from three aspects: (i) demonstration effects of successful investee company restructuring (ii) demonstration effects of new ways of financing activities (iii) institution building. The Fund will add value to the portfolio companies of the Fund by active participation in their management and operations and transfer their knowledge and experience to the portfolio companies. As there are not many precedents for private equity in some of the target countries, the Fund will also fulfil an educational role by creating awareness and winning acceptance for this form of financing. Emerging Europe Convergence Fund II LP is a private equity fund to be established in Guernsey. EMP Europe Management (CI) LP will be the General Partner and Fund Manager. Mid Europa Parners LLP will be retained by EMP Europe Management (CI) LP as the Investment Manager. EBRD will commit up to 10% of the total aggregate capital commitments of the Fund. Target size of the Fund is EUR 500 million. The Fund will apply the EBRD's environmental procedures for Private Equity Funds which ensures adherence to the Bank's Environmental Exclusion and Referral List, that appropriate environmental due diligence is carried our prior to investment, that investee companies meet, at a minimum, national standards for environment, health, safety and labour. None. Thierry Baudon, Managing Partner 161 Brompton Road London SW3 1EX Phone: +44 (0) 20 7886 3600 Fax: +44 (0) 20 7886 3639