The Fund will be managed by the Emerging Markets Investments Pte. Ltd (EMI) in technical partnership with Aureos Capital Limited (Aureos). EMI is a wholly-owned subsidiary of Emerging Markets Group Holding, a Singapore-registered company whose shareholders have together managed a consulting firm founded in 2004 which provides business consulting services to companies and donor agencies in Cambodia and Laos. Aureos, established in 2001, is a private equity group which focuses on investing in medium-sized enterprises in emerging markets.

It is proposed that IFC invest up to $4 million.

4.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	4.0

* These investment figures are indicative

The Fund will be established in Luxembourg and the fund manager will be registered in Singapore. The management team will be based in Phnom Penh, Cambodia with support from its affiliated consulting company in Vientiane, Laos.

- 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. - Support for SMEs: The Fund is expected to invest predominantly in SMEs.

- 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 first-time 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 Committee.

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;
- Submit a periodic report to IFC as per a format to be provided by IFC.

IFC will review the implementation and performance of the Fund’s SEMS for the first few projects, prior to the Fund’s investment, to ensure that the Fund’s SEMS is robust.