The Fund will be managed through a limited liability partnership, Mid Europa Partners LLP (“MEP”), which is controlled by its three Partners: Thierry Baudon, Craig Butcher and Colin Hewett. MEP is a successor to EMP Europe Ltd, which was formed in 1999 by EMP Global (an independent private equity fund advisor, responsible for the investment of six private equity funds totalling US $5.7 billion in commitments in Africa, Asia, Latin America, Europe and the Middle East) for the purpose of advising the AIG Emerging Europe Infrastructure Fund (“EEIF”), a $550 million private equity fund focused on infrastructure projects in Central and Eastern Europe, in which IFC is an investor. Although MEP will now be operating independently of EMP Global, the two organizations will retain a close relationship. Under the management of Thierry Baudon, EMP Europe was built to its current size of 11 investment professionals and successfully operates out of three offices in Budapest, London and Warsaw. The majority of the core team has been working together since EEIF’s inception in 1999. This team of professionals’ shares over 50 years of combined private equity investment experience, 100 years of transaction experience, and 80 years of experience in the region including managerial and industrial expertise in relevant sectors.

The total size of the EECF fund is expected to be €500 million. IFC would be investing up to €20 million in the Fund.

25.84 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	25.84

* These investment figures are indicative

The region in which EECF II is planning to invest includes both countries that recently joined the EU (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia) and accession candidate countries (Bulgaria, Croatia, Romania). Also EECF is contemplating investing up to 20% of its capital in other countries (such as Russia and Ukraine).

Even after accession to the EU, many companies in Central and Eastern Europe are experiencing difficulties raising equity, mainly due to relatively weak public equity markets. Insufficient levels of equity make borrowing to finance modernization and growth more difficult. The presence of EECF is expected to facilitate access to capital for the development of these companies. As EEIF has demonstrated in a number of its portfolio investments, the EECF’s portfolio companies are also expected to benefit from having a shareholder capable and willing to share its industry and financial expertise as well as to play an active role in strategic development, implementing change, and establishing contacts with partners. The fund’s participation in these activities would help the client companies to be more competitive both on the regional and international levels. Increased efficiency and scale of operations would help client companies increase productivity and create more jobs, producing a long-term effect on the national economy, which is particularly important for the EU accession countries. IFC’s role in the proposed investment will be threefold. First, by investing in EECF, IFC would be supporting a capable investment team with a proven and strong track record helping it to attract other investors in the fund, and providing advice and guidance on the fund’s investments. Second, IFC’s participation would encourage the fund to invest more aggressively in Romania, Bulgaria, Russia and Ukraine. Third, IFC will share its experience in the target industry sectors to ensure that the investee companies benefit from the best industry practices, environmental policies, and corporate governance. IFC is expected to have a nominee on EECF’s Advisory Committee.

This is an FI type 2 project. EECF II will be required to ensure that its environmental management system can address the environmental and social management issues associated with fund’s investment program.
Location of environmental documents in locally affected community