The Fund is sponsored by Horizon whose principals are Richard Flett, Steven Lipchin and Robert Horton. Horizon, which was established in 1992, has managed three prior funds that had aggregate capital commitments of Rand 300 million which was invested in 25 companies.

IFC intends to invest up to Rand 100 million in the Fund. IFC’s commitment will be the lower of Rand 100 million or 20% of the total commitments of the Fund.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	10.0

* These investment figures are indicative

Horizon III will operate mainly in South Africa.

Horizon III is expected to have several important development impacts, the key ones being: - Providing support for SMEs in South Africa where this market segment lacks access to long-term capital; - Contributing to private sector growth by providing capital and advice (through the Fund Manager) to high risk early stage companies; and - Contributing to the development of local fund management teams through the investment in Horizon III.

IFC’s expected contribution to Horizon III is to serve as: - Catalyst for mobilizing follow-on capital commitments from other investors in subsequent closings of the Fund; and - Guidance on best practice in corporate governance and Environmental and Social (E&S) Policy.

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 FI portfolio, and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determine the Applicable Requirements, if any, that would include a combination of:

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

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

Based on the review, the project 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 supported by IFC financing 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 as per a format to be provided by IFC