Summary of Proposed Investment
Project Number
10586
Company Name
BARING VOSTOK FUND
Date SPI Disclosed
Oct 3, 2000
Country
Eastern Europe Subregion
Industry
other
Projected Board Date
Oct 31, 2000
Status
Active
Sector
Private Equity/Venture Cap Fund - Regional
Department
Equity Portfolio Management
Environmental Category
FI
Previous Events
Approved : Dec 29, 2000
Signed : Jan 31, 2001
Invested : Feb 20, 2001
Project Description
The Fund will have a term of eight years and a target capitalization of US$150 million, and will seek to realize significant returns through private equity and equity-related investments in privately owned companies in the Region.
IFC Role: IFC participation will be instrumental in mobilizing a significant amount of additional capital for the Fund from other investors, especially from new investors that are not participants of the First NIS Fund. Although the Russian economy has improved much since the August crisis of 1998, this progress has had little impact on encouraging much-needed capital investment in the Region. In addition to stimulating more foreign investment, investing in this type of locally managed fund presents a more effective way for IFC to reach and invest in locally owned enterprises in the regions of the countries in question than is possible by direct investments.
Developmental Impact: The Project will have a significant developmental impact by: i) channeling much needed long term investment capital to sectors considered to be crucial to the growth of the Region; ii) supporting viable regional enterprises (especially in Russia); iii) introducing new technologies and management disciplines; and iv) having a demonstration effect on other investors contemplating investment in the Region.
IFC Strategy: Investment in the Fund fits well with IFC''s strategy in Russia in that it will support: i) mobilization of foreign direct investment and long-term debt financing; ii) investment in private sector infrastructure and natural resource development; and iii) development of locally owned businesses in the less advanced regions of the countries where they operate.
IFC Role: IFC participation will be instrumental in mobilizing a significant amount of additional capital for the Fund from other investors, especially from new investors that are not participants of the First NIS Fund. Although the Russian economy has improved much since the August crisis of 1998, this progress has had little impact on encouraging much-needed capital investment in the Region. In addition to stimulating more foreign investment, investing in this type of locally managed fund presents a more effective way for IFC to reach and invest in locally owned enterprises in the regions of the countries in question than is possible by direct investments.
Developmental Impact: The Project will have a significant developmental impact by: i) channeling much needed long term investment capital to sectors considered to be crucial to the growth of the Region; ii) supporting viable regional enterprises (especially in Russia); iii) introducing new technologies and management disciplines; and iv) having a demonstration effect on other investors contemplating investment in the Region.
IFC Strategy: Investment in the Fund fits well with IFC''s strategy in Russia in that it will support: i) mobilization of foreign direct investment and long-term debt financing; ii) investment in private sector infrastructure and natural resource development; and iii) development of locally owned businesses in the less advanced regions of the countries where they operate.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Mike Calvey
Managing Partner, Baring Vostok Capital Partners
10 Uspenski Pereolok,
Moscow, Russia
103006
Managing Partner, Baring Vostok Capital Partners
10 Uspenski Pereolok,
Moscow, Russia
103006