Paladin II is sponsored by Paladin Realty Partners, LLC, a Delaware-registered limited liability company and an institutional investment manager established since 1995. Paladin Realty Partners is owned 51% by Paladin management personnel and 49% by the William E. Simon and Sons Funds Group, LLC. Ten professionals comprise the Paladin team: Mr. James Worms (President) and nine Principals: Messrs. William Dunbar, Philip Fitzgerald, John Gerson, David Gold, Frederick Gortner, Scott Hadley, Jay Hartman, Michael Lenard and Mrs. Whitney Greaves. Paladin Realty Partners has investments in more than 200 real estate assets in North, Central and South America. The General Partner (“GP”) of Paladin II will be Palador Realty-GP, a Delaware-registered limited liability company, and the Fund Manager will be Palador Realty, LLC; both are affiliated with and controlled by Paladin Realty Partners, LLC. In addition to the ten Paladin staff, Messrs. Vincent Carroza (Partner-Mexican Office), Jorj Kalman (Partner-Brazil Office) and Andrew Cummins (Partner-Chile Office) have ownership in Palador Realty, LLC.

Paladin II expects to raise $200 million in capital commitments. It is proposed that IFC invests up to $15 million – or 7.5% of Paladin II’s proposed capitalization, assuming the Fund meets its target size of $200 million. Should the Fund raise $100 million (1st closing), IFC’s investment would represent 15% of commitments.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	15.0

* These investment figures are indicative

Initial developments will be located in Central America, Brazil, Chile and Mexico. The Fund is actively seeking developments in other LAC countries. Palador is headquartered in Los Angeles and has offices in Sao Paolo, Santiago, Buenos Aires and Mexico City.

- Development Impact: Affordable housing is a high priority for LAC governments, but often does not receive funding from local financial institutions. In the past decade, several affordable housing programs have been sponsored by LAC governments to try to produce more reasonably-priced housing units, for purchase and for rent. However, in light of the fiscally difficult times that LAC governments are currently facing, no additional funding has become available to build affordable housing. For this reason, specialized private real estate companies are looking for creative, yet financially rewarding solutions to fill the housing need. Paladin’s operations have had a good track record in a segment in which other investors do not invest, affordable and middle-income housing. - IFC role: - Catalytic role: IFC’s investment will help the Fund reach critical economic size. Although the Paladin team has invested in LAC previously (through an allocation of Paladin I), Paladin II will be their first all-LAC fund. Institutional investor fundraising is expected to be enhanced by IFC’s investment. - Governance: IFC has requested that the Fund set up an Advisory Committee, which would comprise Limited Partners and in which IFC would participate, to review, in particular, potential conflicts of interest, valuations, costs and usage of debt. - Structuring: IFC will negotiate to align the Fund’s structuring with best market practices. Particular attention will be given to issues of governance, alignment of interest between the Limited Partners and the General Partner, risk diversification, additional fees, cash management and control of the Limited Partners over early termination of the General Partner or extensions of the Fund. - Sustainability of the investees: IFC will contribute to the sustainability of the Fund’s investments by playing an important role in the definition of corporate governance and environmental standards to be applied at the project and platform level.

This is a category FI Type 2 project according to IFC’s Environmental and Social Review Procedure. As such, the management team has committed to the following:

- to undertaking an environmental and social review of each sub-project;
- to requiring all sub-projects to be carried out and operated in compliance with applicable host country environmental; health and safety requirements, in accordance with IFC safeguard policies and consistent with IFC''s Exclusion List;
- to requiring that Category A sub-projects meet the World Bank Group’s applicable environmental, health and safety guidelines; and
- to obtaining IFC’s clearance prior to making any Category A investment.
Location of environmental documents in locally affected community
This is a category FI Type 2 project according to IFC’s Environmental and Social Review Procedure.