Proa II

completed

Proa II (the Fund or the company) is a private equity fund designed to achieve superior returns by acquiring control and/or shared control stakes in undervalued mid-market Chilean companies. Proa II’s target size is $60 million. Proa II will be structured as a “Fondo de Inversiones de Desarrollo Industrial-FIDE”. The Fund plans on making 8-10 investments in mid-size Chilean companies which meet at least one of the following criteria: - being a solid local company with a focus in the local market but wanting to reorient sales to export markets; - being a local company which targets servicing export-oriented companies; - industries targeting local or international markets and whose long-term competitive strategy centers on the development of economies of scales which have not yet been achieved; and - selective companies which received investment from Proa I and are seeking to broaden their businesses through international expansion. In the latter, Proa will have exited its previous investments in the companies before making a follow-on investment. Proa II has an 8-year term, extendable up to two 1-year periods with 2/3 shareholders approval, and a 4-year investment period. The proposed management fee is In line with that of other IFC supported funds. A first closing is expected in late September 2004.