BVCP currently manages three funds in which IFC has an investment: First NIS Fund ($160 million, IFC = $15 million), NIS Restructuring Facility (NISRF) ($15 million, IFC =$10 million) and Baring Vostok Private Equity Fund (BVF) ($205 million, IFC = $15 million). BVCP consists of eight investment partners, headed by Mike Calvey as the founding partner and six principals, project managers and analysts. All members of the investment team live in Moscow. Each investment partner has 10 years of business or investment experience in Russia and CIS, with a focus on various industries and sectors. The investment team also draws on expertise within the Baring Private Equity Partners International network.

The Fund Manager expects the final size of the Fund to be $350 million. IFC’s investment would be the lesser of $20 million or 20% of total commitments to the Fund.

12.50 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	12.50

* These investment figures are indicative

The Fund Manager is based in Moscow, Russia and will target investments principally in Russia, Ukraine, and, where opportunities arise, in other CIS and Baltic countries.

Development Impact: The Fund is expected to produce several important development impacts by: - Providing equity financing for the development of local Russian companies. Such financing is especially scarce for companies outside the Moscow region. BVCP is active throughout Russia, and is considering new opportunities in Ukraine and other CIS states, where equity capital for local companies is particularly scarce. - Helping to develop regional economies in and outside of Moscow by supporting local Russian-owned companies and CIS-owned companies. Viable local companies are crucial to attracting and retaining foreign investment that will rely on dependable local suppliers. - Partnering with local management teams and assisting them in adopting international management practices and standards and supporting them in critical areas such as strategy development through a hands-on investment approach. IFC Role: - Catalyst for Bringing in Institutional Capital: Although BVCP is well-established as a leading private equity investor in Russia, many institutional investors regard IFC’s participation in the Fund as an investor of quality and of substance as very important. - Support of Experienced Fund Manager: The private equity market in Russia remains nascent, despite the sizeable capital resources of local financial-industrial groups and the early attempts by foreign firms to enter the market in the pre-crisis era. Although investor interest towards Russia continues to grow, fund-raising for investments in highly illiquid private companies is still difficult and has been made more difficult by the Yukos situation. IFC would be supporting one of the few established, independent firms, with a strong track record and a demonstrated hands-on approach working with locally companies to help grow their businesses. The Fund Manager regards IFC participation in the Fund as an important part of attracting other institutional investors. - Governance of the Fund: IFC would participate in the Fund’s Advisory Board, which will be responsible for reviewing and/or approving portfolio valuations and resolving any conflict of interest matters. It is also expected to provide oversight of the Fund’s core investment strategy.

This is a FI Type 2 project. BVCP will be required to demonstrate that their existing EMS is adequate to address the environmental and social issues for investments under the new fund. IFC will assess the adequacy of the Fund’s EMS.
Location of environmental documents in locally affected community