Summary of Proposed Investment
Project Number
11626
Company Name
BANCROFT 2 L.P.
Date SPI Disclosed
Aug 16, 2002
Country
Eastern Europe Subregion
Industry
other
Projected Board Date
Sep 30, 2002
Status
Completed
Sector
Private Equity/Venture Cap Fund - Regional
Department
Equity Portfolio Management
Environmental Category
FI
Previous Events
Approved : Nov 15, 2002
Signed : Nov 27, 2002
Invested : Dec 23, 2002
Project Description
Bancroft II will be formed by Bancroft UK Limited to achieve attractive investment returns through a portfolio of diversified companies in Central and Eastern Europe. The main investment focus will be on later-stage businesses, with proven management, strategic assets, and sizable exports or fast growth locally. Bancroft UK Limited will add value through active investment management, control or majority ownership positions, and board participation.
Development Impact:
The fund will contribute to the economic development of the region by supporting 10 to 15 companies who lack equity financing and managerial and strategic support to make them regionally and globally more competitive and therefore more attractive to other investors.
After having grown strongly in the early to mid- 1990’s, private equity fund raising for the Central and Eastern Europe region has dropped sharply. The fund, using a disciplined and thorough investment approach, will help demonstrate that the private equity model can be successful in Central and Eastern Europe, attracting further private equity resources to the region. If private equity is successful, public markets are likely to become increasingly viable.
IFC Role
Over the past year, the international and regional economic environment has deteriorated, decreasing investor confidence. IFC’s commitment to the fund will signal IFC’s support to private equity in Central and Eastern Europe at a time of increased investor anxiety and will enhance the fund’s credibility in markets where IFC has a strong active presence. It will also assist the fund with networking opportunities, and to achieve a critical economic size, maximize its impact and demonstration effect. IFC will be involved in strategic planning and governance issues of the fund. Among other things, IFC will be a member of the fund’s Advisory Committee, which will deal with governance issues at the fund level. Finally, IFC will play an important role in the definition of corporate governance and environmental standards at the investee company level, contributing to the sustainability of the fund’s investments.
Development Impact:
The fund will contribute to the economic development of the region by supporting 10 to 15 companies who lack equity financing and managerial and strategic support to make them regionally and globally more competitive and therefore more attractive to other investors.
After having grown strongly in the early to mid- 1990’s, private equity fund raising for the Central and Eastern Europe region has dropped sharply. The fund, using a disciplined and thorough investment approach, will help demonstrate that the private equity model can be successful in Central and Eastern Europe, attracting further private equity resources to the region. If private equity is successful, public markets are likely to become increasingly viable.
IFC Role
Over the past year, the international and regional economic environment has deteriorated, decreasing investor confidence. IFC’s commitment to the fund will signal IFC’s support to private equity in Central and Eastern Europe at a time of increased investor anxiety and will enhance the fund’s credibility in markets where IFC has a strong active presence. It will also assist the fund with networking opportunities, and to achieve a critical economic size, maximize its impact and demonstration effect. IFC will be involved in strategic planning and governance issues of the fund. Among other things, IFC will be a member of the fund’s Advisory Committee, which will deal with governance issues at the fund level. Finally, IFC will play an important role in the definition of corporate governance and environmental standards at the investee company level, contributing to the sustainability of the fund’s investments.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Fred Martin, Chief Executive Officer
Bancroft UK Ltd
251 Brompton Road, London SW3 2EP
United Kingdom
Phone: + 44 207 823 9222
Fax: + 44 207 589 3442
Email: martin@bancroftgroup.com
Bancroft UK Ltd
251 Brompton Road, London SW3 2EP
United Kingdom
Phone: + 44 207 823 9222
Fax: + 44 207 589 3442
Email: martin@bancroftgroup.com