Aloe is an independent private equity firm established in 2004 by Mr. Vivek Tandon and Mr. Jean-Pascal Tranié (the Founders), former executives at Viventures Partners. Aloe’s team members have diverse skills as professional investors, entrepreneurs, and corporate managers. Aloe Private Equity is owned 100% by the two Founders. Aloe 2 is sponsored by Leading Environmental Solutions and Services (LESS) Limited (Sponsor) a strategic fund of funds focused on investing in environmental companies, services or solutions that are beneficial for India and China (http://www.lesslimited.com).

It is proposed that IFC commit an equity investment of up to €15 million.

19.21 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	19.21

* These investment figures are indicative

The Fund will be formed as a French Fonds Communs de Placement à Risques and will have local management teams based in China, France, India, and the United Kingdom.

Project Development Impact:

- Investments in the environment space – environment protection, environment technology and services:

The Fund will invest solely in companies that aim to sustain, restore or improve the global environment through projects in developing countries, mainly in India and opportunistically in China.

- Private sector development:

The Fund will add value to its investee companies, by providing managerial and strategic support to improve their competitiveness and sustainability.

- Adoption of best practice for corporate governance, socially responsible investing and environmental standards:

The Fund will adopt international best practices for environmental and social risk assessment and management, as well as transparency and corporate governance, thus fostering knowledge and skill transfer, and encouraging best practices across the industry.

- Support for Small and Medium Enterprises (SMEs):

The Fund is expected to allocate part of its capital for SMEs.

IFC’s role includes:

- Business synergy in the environment space:

Given Aloe 2’s energy and environmental focus, IFC can expect significant synergies with the Fund and its portfolio companies.
- Institution-building:

By supporting Aloe 2, IFC will institutionalize Aloe’s business by improving the structuring of the Fund, its governance and workings with investors according to IFC and international best practice.


- Catalytic role:

IFC will add credibility to Aloe and increase its chances of broadening its investor base by encouraging the mobilization of capital from institutional investors which will position the Fund to capitalize on growth opportunities

- Leverage:

IFC will add credibility and additional leverage to the equity by seeking to provide additional project financing to investments which meet the IFC criteria.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will analyze the fund’s expected portfolio and sectors of investment and determine the Applicable Performance Requirements if any, that would include a combination of:

- The IFC FI Exclusion List; and/or
- The applicable National Social and Environmental Laws and regulations; and/or
- The IFC Performance Standards.

IFC will also review, if required, the capacity of the fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). IFC may suggest Supplemental Actions to address any gaps in the SEMS if required.

The Manager will be required to:

- develop an, or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC;
- identify responsible, qualified persons to manage and implement the SEMS;
- commit to implement the SEMS to ensure that its investments/activities are in compliance with the Applicable Performance Requirements;
- submit a periodic report to IFC as per a format to be provided by IFC.