The sponsor of the Fund is Forum Synergies (India) PE Fund Managers Pvt. Ltd, a well qualified fund management group based in Bangalore, India. The fund management team consists of four principals with complementary skill sets in sourcing, structuring/investing, and managing private equity transactions. The principals have significant operations and management experience running the local arms of multinational companies as well as Indian companies. Forum Synergies’ investment principals —Mr. Samir Inamdar, Mr. Hemchandra Javeri, Mr. Prashant Goyal and Mr. Ishwar Subramanian, who collectively hold a significant ownership in the Fund Manager— have held President, CEO, GM, country manager or similar high-level executive positions of Indian subsidiaries of GE, Tyco Electronics, Maruti (Suzuki), Nike, Madura Garments (Aditya Birla Group), 3M, Akzo Nobel, Ernst and Young, among others. The investment committee is comprised of two Forum Synergies principals (Mr. Inamdar and Mr. Javeri) and two investment professionals (Mr. Francisco Velazquez and Mr. Allan Majotra) from Axon Capital, a Madrid-based fund manager to whom the Fund has a parallel investment relationship. Outside of investment decisions, operational and strategic choices for the Trust and the Fund will be made entirely by the Forum Synergies team.

It is proposed that IFC invest up to $15 million but not more than 20% of the total equity commitments of the Fund and its parallel vehicles. The Fund has a target size of $150 million including commitments from parallel vehicles.

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 a limited duration company registered under the laws of Mauritius. The Trust, through which the Fund will invest in India, is a venture capital fund registered under the laws of India. Forum Synergies, a local investment team headquartered in Bangalore, India, will operate and seek investment opportunities across India.

Local Indian investors will participate through a parallel vehicle called India Knowledge-Manufacturing Fund - I (“IKMF-I”), a scheme of the Trust established in India, to which Forum Synergies serves as the investment manager. Through its relationship with Axon Capital, a Madrid-based venture and PE fund manager, the Fund Manager will also have access to India Opportunities Fund F.C.R., a parallel vehicle primarily for European investors cultivated under the Axon relationship. This parallel vehicle is to invest pro-rata, along with IKMF-I, into the same set of portfolio companies.

The Fund is expected to have a strong impact for private sector development as follows:
-- Private sector development: The Fund will add value to its investee companies, by providing managerial, operational and strategic support to improve their competitiveness and sustainability
-- Economic development: The Fund is expected to invest in high-growth companies aiming to increase output, which in turn should lead to increased employment rates.
-- Environmental practices: The Fund Manager will adopt international best practices for environmental and social risk assessment and management, and improve transparency and corporate governance, thus transferring knowledge and skills to portfolio companies.
-- Support of SMEs: The Fund is expected to invest in SMEs and companies slightly above the SME scope.

-- Without IFC''s involvement, the Fund will face difficulty in holding a second close and reaching its intended target size.
-- IFC''s commitment as one of the Fund''s anchor investors will act as a stamp of approval for this first time fund manager and will indirectly catalyze additional investors. The Fund Manager has stated that they see IFC''s participation as a critical signal of confidence at a time of slow fund raising pace among institutional and private investors. IFC''s presence and signal of credibility will help the Fund secure a diversified investor base and move away from its private investor-heavy orientation.
-- IFC will bring the expertise and presence needed to assist the Fund Manager, in particular global knowledge and networks to complement the fund management team''s networks.
-- IFC will request a seat on the advisory committee, which provides conflict of interest and governance advice to the Fund and informal general advice. Through co-investments, IFC can also provide additional equity or debt financing to investee companies where needed.
-- IFC will review the structure and terms, and will request changes consistent with international best market practice required by commercial and institutional investors, in addition to E&S standards.

The project involves an IFC investment in a private equity fund that will target investments in SMEs and mid-cap companies in India and has been classified as a Category FI according to IFC’s Environmental and Social Review Procedure. While the Fund’s expected sectors of investments appear to be of low to medium E&S risks, during appraisal IFC will assess in detail the the Fund’s expected portfolio to determine potential E&S risks. IFC will also review the Fund Manager’s capacity to manage E&S risks as well as its E&S track record with other funds, if any. Sub-projects financed by the Fund will need to comply with IFC FI Exclusion List, the applicable host country E&S laws and regulations, and the IFC Performance Standards (the Applicable Performance Requirements).

The Fund Manager will be required to: develop or upgrade an ESMS, prior to commitment and to the satisfaction of IFC and implement the ESMS to ensure that the Fund''s investments are in compliance with the Applicable Performance Requirements and submit a periodic report to IFC.

IFC will review the implementation and performance of the Fund''s ESMS for the first few sub-projects and all Category A projects, if any, prior to the fund''s investment, to ensure the ESMS adequacy and assess and manage E&S risks.