Aureos, established in 2001 as a joint venture between CDC and Norfund, is a private equity group which focuses on investing in medium-sized enterprises in emerging markets. The Fund will be managed by local investment professionals (Investment Team) with operational and technical support from Aureos Advisers Ltd in London and Aureos Capital Ltd in Mauritius.

It is proposed that IFC invests up to $40 million in the Fund and provides a $6 million loan to the management company.

40.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	40.0

* These investment figures are indicative

The Fund will be formed as a Mauritius limited liability company and will have a local Investment Team based in eight country offices (Ghana, Kenya, Mauritius, Nigeria, Senegal, South Africa, Tanzania, and Zambia) with Ghana, Kenya, and South Africa as regional hubs.

Project Development Impact:

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

- Adoption of best practice for corporate governance and environmental standards: the Fund will adopt international best practices for environmental and social risk assessment and management, as well as transparency and corporate governance, thus fostering knowledge and skill transfer, and encouraging best practices across the industry.

IFC’s role includes:

- Fund Structuring: IFC will work closely with the Manager to ensure the Fund’s structure and terms are in line with IFC and international standards.

- Governance of the Fund: IFC will seek to play a governance role through participation on the Fund’s advisory structures.

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

The Fund will likely apply Aureos Capital''s Social & Environmental Management System (SEMS). IFC will review the Fund’s proposed portfolio against the SEMS and suggest Supplemental Actions to address any gaps in the SEMS if required.

Based on the Applicable Performance Requirements and SEMS and capacity review, the Fund will be required to:

- Upgrade if necessary, its 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 as per the standard Aureos reporting format provided by IFC for previous investments

Aureos Capital’s SEMS has been recently updated and now incorporates IFC’s Performance Standards.