ZN Mexico Capital Growth Fund (Monarca Fund)

completed

Summary Of Project Information (SPI)Project NameMexico - ZN Mexico Capital Growth Fund LtdRegionLatin America and the CaribbeanSectorProject No008436Projected Board DateDecember 22, 1997Company NameZN Mexico Capital Growth Fund Ltd, ZN Management Ltd Technical Partner and/or Major Shareholders The Fund is sponsored by Nexxus Capital (Nexxus), an investment banking advisory company established by a group of experienced Mexican professionals and Zephyr Management Inc. (Zephyr), a US private equity management firm. Nexxus Principals are led by Mr. José Juan Alvarez, 48, who is a managing partner of Nexxus and a former head of corporate banking at Grupo Financiero GBM Atlantico. Zephyr is headed by Mr. Thomas C. Barry the former CEO of Rockefeller & Co. Project Cost Including proposed IFC investment The fund is expected to range between, US$ 50 - 75 million. IFC will invest US$15 million or 20%, whichever is less, of the total capitalization of ZN Mexico Capital Growth Fund Ltd, and up to 20% of ZN Management Ltd the management company of the fund.Location of project and Description of site MexicoDescription of Company and Purpose of Project The project consists of setting up a ten-year, US$75 million private equity fund targeting Mexican small and medium-sized enterprises (SMEs) with sales no greater than US$100 million. The Fund’s principal investment strategy is to take significant equity interests in SMEs with strong growth potential and needing financial restructuring, risk capital strengthening and/or managerial assistance. IFC through this project will help increase the flow of equity finance to Mexican SMEs and help the development of Mexico’s equity market. Environmental Category and Issues This is a Financial Intermediary (FI) category project according to IFC''s environmental review procedure. The Fund will be required to undertake an environmental review of eligible investee companies'' operations. In addition, IFC will assess ZN Management capability to carry out environmental reviews of each investee company.Date SPI sent to PIC      November 10, 1997“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384L:\CLACM\MARTELLI\ZNFUND\ZNSPI.DOCNovember 7, 1997 4:53 PM