The chief sponsor of APF-I is Ashok Wadhwa, founder of Ambit Corporate Finance and co-founder of India Value Fund (IVF). Ambit is a network of three entities – Ambit Corporate Finance, engaged in M&A, capital raising and asset restructurings; IVF, a well-known PE fund in India with a corpus of $600 Million; and Ambit Capital, which provides brokerage, wealth management and related financial services. Rajeev Agrawal, key principal, was formerly a fund manager in IVF.

The Fund has a target size of $100 million and IFC’s proposed investment will be the lesser of $15 million or 20% of commitments.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	15.0

* These investment figures are indicative

The Fund is registered and headquartered in Mauritius and will make investments in high growth Indian SMEs, including those located outside the main Indian metros.

The project:

- Supports a fund that will invest in SMEs in India
- Supports the development and growth of local entrepreneurship in second tier towns and cities: The Fund will provide equity financing and management expertise to SMEs with high-growth potential in second tier towns and cities in India, thereby contributing to more even development.
- Strengthens an emerging domestic fund manager
- Adds value to portfolio companies by means of management expertise and improved corporate governance
- Imparts global best practices in the fund management industry and builds local institutions
- Contributes to sustainable economic development by incorporating environmental and social standards

IFC’s commitment will serve in an institution building and catalytic role providing added credibility to a first-time fund. IFC’s investment will help the Fund achieve a successful closing with international investors and reach a size necessary for sustainable operations. A key component of IFC’s strategy is to support emerging managers, especially those with an SME focus.

IFC will also assist in improving Fund structure and terms to international standards, impart norms on corporate governance and best practices and contribute its regional expertise and knowledge. IFC will also assist the Fund on an ongoing basis by improving its access to networks, expertise and industry contacts and partnerships. Through its role on the Advisory Board, IFC will impart ongoing advice on improved corporate governance and environmental and social standards.

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 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 Performance Requirements
- Submit a periodic report to IFC per format to be provided by IFC.