The Fund will be managed by a team of experienced professionals, who have been working together successfully since 1999. The managing partners own 90% of Norum Management Ltd (Norum), with the remaining 10% owned by two sponsoring financial institutions:

- DnB Nor Bank ASA, the largest Norwegian commercial bank, which recently acquired a regional bank in Russia; and
- Sitra Management Ltd, a leading Finish R&D investor with experience in Russia.

The Fund has a target size of €100-150 million. IFC’s investment would be up to €15 million, not to exceed 20% of total commitments.

19.04 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	19.04

* These investment figures are indicative

The Fund is a Cayman Islands exempted limited partnership and will invest in small and medium-sized Russian companies. The management team is based in St. Petersburg and Moscow.

The Fund is expected to have several important impacts:

- Support the development and growth of local entrepreneurship and SMEs:

The Fund will provide equity financing and management expertise to a number of competitive and fast-growing SMEs and is expected to be a catalyst for the mobilization of further financing for its investee companies.

- Encourage regional economic development:

Norum will continue supporting companies, thereby stimulating employment and growth, outside the main centers of financial/economic activity.

- Improve business environment and support capacity building of companies:

The Fund will provide value added services aimed at improving corporate governance and implementing environmental and social standards, thereby transferring important skills to local entrepreneurs and creating the basis for sustainable economic development.

- Introduce and develop new financial products:

Private equity is an important source of external financing for fast-growing companies.

- Catalytic role mobilizing foreign institutional and private capital.
- Providing input regarding fund structure and terms.
- Improving corporate governance and assisting in adoption of best practice corporate governance and environmental and social standards at the Fund and portfolio company level.

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

During appraisal, IFC analyzed the Fund’s expected portfolio and sectors of investment and determined the Applicable Requirements based on an analysis of the potential social and environmental risks associated with the expected portfolio and considering IFC’s investment. The Applicable Requirements are:

- the IFC FI Exclusion List,
- the applicable National Social and Environmental Laws and regulations.

IFC also reviewed the Fund’s existing Social & Environmental Management System (SEMS) and capacity to implement the same.

Based on the Applicable Requirements and SEMS and capacity review, the Fund will be required to:

- Revise its existing SEMS prior to disbursement, to the satisfaction of IFC, to incorporate screening of investments against IFC''s FI Exclusion List;
- Commit to implement the SEMS to ensure that its investments are in compliance with the Applicable Requirements;
- Commit to take action to remedy any gaps in SEMS implementation on an ongoing basis;
- Submit a periodic report to IFC.