The Manager will be led by Edwin Soeryadjaya and Sandiaga Uno who have worked together since 1998 and managed the Saratoga Capital Group, an informal Indonesian country fund that raised capital for investments on a deal-by-deal basis. The Manager intends to raise Saratoga II as an institutional fund with a formal fund structure and governance, and has recruited Kay Mock, a senior investment professional from the Government of Singapore Investment Corporation (GIC) to meet this need. In addition, the Manager is in advanced stages of hiring more investment professionals with experience in private equity, investment banking and strategic consulting in Southeast Asia.

It is proposed that IFC invest up to $25 million.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	25.0

* These investment figures are indicative

The Fund is formed as a Cayman Islands exempted limited partnership. The Manager currently maintains offices in Jakarta, Indonesia and Singapore.

Saratoga II is expected to deliver the following development impact:

- Promote private sector growth:

The Fund will help private companies in Southeast Asia grow revenue, profitability, employment and labor productivity by providing risk capital and operational guidance.

- Enhance corporate practices:

The Fund will help portfolio companies adopt better practices in corporate governance, social and environmental standards.

- Improve public infrastructure and people’s lives:

The Fund will invest in power plants, toll roads, palm oil plantations and other similar projects which will create jobs, improve public infrastructure and the welfare of the community.

IFC’s role includes:

- Capital mobilization:

IFC’s commitment will help a first-time fund attract enough capital to achieve a first close and eventually reach a critical fund size.

- Private institution building:

IFC expects to sit on the Fund’s Advisory Board and to play an active role in ensuring the Fund adopts best practice fund management and governance.

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 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 Fund Manager will be required to:

- Develop, 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 Requirements,
- Take action to remedy any gaps in SEMS implementation on an ongoing basis, and
- Submit a periodic report to IFC as per a format to be provided by IFC.