Fund II will be managed by Horizon Capital Associates, LLC, a Kiev-based private equity firm, whose team consists of fourteen investment professionals with prior experience of making private equity investments in the region, gained from their involvement in the Fund’s predecessors: the Western NIS Enterprise Fund (established 1994) and the Emerging Europe Growth Fund (raised in 2006).

Fund II has a target committed capital size of $300 million. IFC’s investment in would be up to $20 million, not to exceed 20% of total commitments.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	20.0

* These investment figures are indicative

The Fund and the Manager will be registered and incorporated in the Delaware. The management team will be based in Kiev, Ukraine.

- 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): Some of the Fund’s investee companies are expected to be SMEs at the time of acquisition.

- Catalyze other funding from foreign institutional and private capital: IFC''s participation will provide comfort to other investors and broaden the Fund’s investor base for successful first and subsequent closings.

- Support an emerging fund manager: IFC will support the development of the local private equity industry by supporting a local emerging fund manager.

- Fund structuring role: IFC will provide input to ensure the Fund is structured according to international best practice.

- Institution-building role in fund operations and governance: IFC will play a governance role through participation on the Fund’s Advisory Board.

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 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 according to a format to be provided by IFC.