The Group is a well-diversified financial services group in Pakistan, and includes: - Jahangir Siddiqui & Co. (investments & fixed income trading); - JS Capital Markets (equity & fixed income sales and corporate finance); - JS Investment Bank (commercial lending); - Bank Islami (Islamic commercial bank); - Abamco (asset management); - JS Finance (Sharia-compliant asset management); - DCD-JS Factors (export credit protection & receivables factoring), - Network Microfinance Bank (microfinance & microleasing); - EFU Insurance Group (life, health & general insurance). The team will work to address potential conflict of interest issues and ensure that there are appropriate firewalls in the legal structure. The private equity team will consist of three partners: Ali Siddiqui, Stephen Smith and Mohammad Sajid (collectively, “the Team”). Ali Siddiqui, who will lead the Team, has seven years of private equity investment experience in Hong Kong (Crosby Capital Partners and Techpacific Capital) and Pakistan. Stephen Smith has 13 years of experience in project finance (European Capital) and private equity in Asia (Techpacific Capital). Mohammad Sajid has 13 years of experience in Pakistan in corporate finance, and has led legal negotiations of key transactions within JS Group.

IFC investment would consist of an equity investment of up to $20 million, for up to 20% of the Fund’s total capital commitments. IFC’s proposed investment amount has been chosen to fulfill IFC’s role of helping the Fund achieve a critical size and to reflect IFC’s anchor role. IFC will not be the largest investor in the Fund.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	20.0

* These investment figures are indicative

The Fund will be a Limited Liability Company domiciled in Mauritius.

The Fund will be the first private equity fund in the country. Despite the upsurge in economic activity in the country over the past six years, companies have faced difficulties in raising equity investment. Insufficient levels of equity make borrowing to finance modernization and growth more difficult. The proposed Fund would help to address one of the major challenges in development of these companies. In addition, as JS Group has demonstrated in a number of its portfolio investments, the Fund’s portfolio companies are expected to benefit significantly from its shareholder ability to share industry and financial expertise and provide assistance in the repositioning, restructuring and expansion of companies. Furthermore, the project will support a first-time private equity fund manager to access international capital markets, bring to bear best industry practice in managing third-party capital, and play a pivotal role in the development of the local private equity industry in Pakistan. An important component of the World Bank Group’s strategy for the MENA region is to promote sustainable economic growth and raise standards of living by: fostering private sector development, growth and employment; creating an enabling environment that will attract foreign direct investment; and strengthening institutions and governance. Equity is often a limiting factor for the establishment and growth of companies. IFC has been an active participant in the transition of targeted countries to market-based economies. IFC’s strategy is focused on: - Supporting the development of banking and non-bank financial institutions; - Supporting privatization and restructuring of companies, and investing in commercially viable companies and providing solutions for their modernization and working capital needs; - Promoting the growth of local entrepreneurship and SMEs; - Providing technical assistance to improve business environment and support capacity building of companies.

This is an FI type 2 project according to IFC''s environmental and social review procedure. The fund manager will be required to establish an environmental management system (EMS) to ensure that each investment complies with applicable environmental and social requirements of the Government of Pakistan, as well as any applicable IFC environmental and social requirements. In addition, the fund manager will be required to provide to IFC an annual environmental progress report on the implementation of the EMS
Location of environmental documents in locally affected community