The Fund Advisor is Swicorp SA (Tunisia); a wholly owned subsidiary of Swicorp KSA. The management team of Swicorp SA (Intaj management team) consists of 16 investment professionals based in Tunisia, Algeria, Saudi Arabia and Dubai. The team has an established track record separately and jointly and is currently managing Intaj I. Their prior work experience varies between private equity, consultancy, M&A and operational management. The Fund sponsor is Swicorp KSA, a Saudi closed joint stock company that was founded in 1987 by Mr. Kamal Lazzar, a Tunisian national and the former vice president of Citibank for North African and Europe. Swicorp KSA was instituted with a focus on financial advisory services in the MENA region advising a number of regional players. Advisory Services activities started in 1987 followed by private equity activity in 2004 and principal investing in 2007.

The Fund is targeting a first closing in early 2010 with committed capital of $80 million. The proposal for IFC is to make an equity investment of up to U$20 million; not to exceed 20% of total commitments in the “Non-GCC Partnership”.

20.0 million (USD)

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

* These investment figures are indicative

The Fund will consist of two English limited partnerships, the “Pan-MENA Partnership” and the “Non-GCC Partnership”, together with a corporate feeder vehicle established in Bahrain (“Intaj II GCC”). The GP will be registered in Gibraltar. The management team will be based in Tunisia, Dubai, Algeria and Saudi Arabia.

The investment will have a strong developmental impact as it will help mobilize needed long term and stable capital for the Fund, which will in turn support the expansion and operations of mid to large cap companies thus promoting south-south investments, employment, growth and best practice standards for corporate governance and E&S in the region.

Fund Raising & attracting long-term institutional investors: IFC’s investment will help mobilize stable funding from institutional investors particularly IFIs. Mobilizing funds from East to West of MENA: by investing in Intaj II, IFC will be supporting a regional private equity fund that will mobilize funds from certain gulf countries including Saudi Arabia and channel these funds to other countries in the region including Egypt and Algeria; thus helping to bridge funding and investment opportunities in the region. “Buy” local players & “build” them into local industry leaders & regional players: IFC is uniquely positioned to assist Intaj II in its regional integration strategy through its global knowledge and local presence particularly in countries where Swicorp is not yet fully familiar for instance Algeria. IFC will help the Fund implement its “buy and build” strategy by building local industry players into local industry leaders with the potential of transforming them into competitive regional players by consolidating their positions through regional acquisitions, integration or greenfield expansion. Co-investment: IFC is in a position to provide debt and equity financing to target investee companies, which is highly valuable in today’s markets characterized by capital constraints and limited availability of debt financing from local institutions.

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
- The applicable National Environmental and Social Laws and regulations and/or
- The IFC Performance Standards
IFC will also review, 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;
- Take action to remedy any gaps in SEMS implementation on an ongoing basis;
- Submit a periodic report to IFC as per a format to be provided by IFC.