46104 - Innova VII

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Summary of Investment Information

Project Number

46104

Company Name

INNOVA CAPITAL FUND VII

Date SPI Disclosed

Mar 24, 2022

Country

Poland

Region

Europe

Projected Board Date

Apr 29, 2022

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Sep 30, 2022

Department

Equity Portfolio Management

Industry

Funds

Previous Events

Approved : Jun 6, 2022
Signed : Jun 30, 2022
Invested : Sep 14, 2022

Sector

Growth Equity Fund

Project Description

The proposed project consists of an IFC equity commitment of up to EUR 40 million in Innova/7 SCA SICAV-RAIF (“Innova 7” or the “Fund”) a closed-end private equity fund domiciled in Luxembourg with a target size of EUR 350 million. The Fund is targeting mid-market growth / buyout investments in Poland and Central and Eastern Europe (“CEE”).

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	88.06

Development Impact

E&S Category Rationale / Risks and Mitigation

The proposed project has been classified as a Category FI-2 project according to IFC Sustainability Policy. The Fund will focus on lower mid-cap companies in several sectors including telecommunication, business services, manufacturing, consumer products and retail, healthcare, recycling and renewables in Poland and potentially CEE countries. Potential E&S risks and impacts associated with the Project are likely to be medium. The Fund will not invest in any activities on IFC Exclusion List, coal-related activities, or higher risk business activities that may include: a) involuntary resettlement, b) risk of adverse impacts on indigenous peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage or d) significant occupational health and safety risks. IFC's applicable E&S requirements for this project will be the IFC Exclusion List, the host country laws and regulations, and the IFC's Performance Standards.

In accordance with IFC's Access to Information Policy, IFC will periodically disclose the names, locations and sectors of sub-projects that have been supported by IFC investments through private equity funds, subject to regulatory constraints and market sensitivities. The sub-project(s) listed below reflect(s) the status of the portfolio as of January 1, 2025.

Investee	Country Of Investment	Sector
CloudFerro	Poland	R-AC- Other Services (Including IT Enabled Services)
Dimark	Poland	M-DC- Other Machinery (Including Metalworking Machinery, Ventilation, Heating and Air-Conditioning, etc.)
EMI Equipement Maintenance	Romania	M-AF- Other Miscellaneous Fabricated Metal Products (Including Non-Wood Housing Products, Tanks, Cutlery, Kitchen Utensils and Handtools, etc.)
ISON Group	Poland	O-JB- General Insurance (Non-Life)
Netopia Financial Services SRL	Romania	O-ME- Online payments, ecommerce payments
R GOL	Poland	Q-BE- Fashion Retail (Apparel, Footwear, Sport)
Tutore	Poland	T-AC- Other Training
Woodeco	Poland	M-FC- Wood Panels and Engineered Wood Products

The main E&S risks and impacts of the project derive from the E&S risks associated with the Fund's investment activities, its capacity and system in place to manage such risks. These risks are typically associated with occupational health and safety, life & fire safety issues, waste management, and working conditions. As an existing IFC client since 2018, the Fund has performed in line with IFC requirements. As part of the Project, the Fund will be required to: maintain internal/external capacity with E&S background/experience; monitor the implementation of action plan developed for existing clients on regular basis; provide E&S due diligence (ESDD) reports for the first three investments prior to the Fund's investment; and continue providing annual E&S performance report for the Fund and its investments to IFC. To support proper ESMS implementation, IFC will review the ESDD and monitoring reports, and conduct site visits, including at the investee level as needed. The Fund will be required to disclose investments on a yearly basis, including their names, sectors, and locations. The Fund has developed its ESG Policy and built proper capacity in place. E&S due diligence is integrated into the investment approval process. As such ESG Policy includes proper tools for the application of Fund's Exclusion List and alignment with applicable national E&S laws and IFC Performance Standards. The Fund has allocated budget for E&S risk management including assignment of an E&S staff and engagement of external qualified consultants to conduct E&S due diligence when its E&S due diligence identifies areas of concern prior to an investment, develops action plan for its investees, and monitors the investee companies accordingly. Currently, the Fund is in the process of improving its existing ESG Policy by including Climate change and Diversity policies and new Whistleblowing system. The Fund has a procedure for external communication in place to collect and address concerns from external stakeholders. Innova has adopted UN Principles of Responsible Investment.

Contacts

For Inquiries About the Project, Contact

Innova/7 GP SARL
Monica Morsch, Magdalena Pasecka
Class A Manager / Class B Manager

innovalux@aztecgroup.eu
4a rue Henri Schnadt, L-2530 Luxembourg, Grand Duchy of Luxembourg
www.innovacap.com

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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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