The Fund will be managed by Samara Capital Management Limited (Samara or the Fund Manager), whose three partners include Mr. Sumeet Narang, Mr. Gautam Gode and Ms. Radhika Dubash – former investment professionals at the India office of Citigroup and Citigroup Venture Capital International (CVC). Samara’s team members have diverse skills in corporate finance, structured finance, and private equity.

Samara Capital has a target size of about $125 million. IFC’s proposal is to invest up to $10 million of the Fund’s total commitments.

10.0 million (USD)

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

* These investment figures are indicative

The Fund will be formed as a company under the laws of Mauritius and will have a local advisory team based in India.

The anticipated development impacts through this investment are as described below:

- Private sector development:

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

- Implementation of best practice for corporate governance in portfolio companies:

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

- Growth in employment and labor productivity:

The Fund is expected to invest in growth stage companies that will increase employment at a high growth rate.

- Support for Small and Medium Enterprises (SMEs):

The Fund is expected to allocate its capital to SMEs.

IFC’s expected contribution to the Fund is:

- IFC’s catalytic role:

IFC''s participation in the Fund will add credibility to Samara Capital and increase the chances of broadening the Fund’s investor base by attracting institutional investors.

- Support an emerging fund manager:

IFC will support the development of the local private equity industry targeting SMEs by helping grow a local first time fund manager.

- Institution building role in fund operations and governance: IFC will help establish reporting standards, and provide corporate governance and anti-money laundering guidelines.

- Fund structuring role:

IFC is helping structure the Fund according to IFC and international best practice, thereby ensuring adequate investor protection.

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 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 Requirements
- 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