The investment manager is Monterey Capital Management (MCM) and investment advisors to the Fund are Kaizen Management Advisory Private Limited (KMA). Kaizen was founded by Sandeep Aneja, who is currently the Managing Director. In addition to Mr. Aneja, the core team includes four directors of KMA; Jetu Lalvani, Amit Ratanpal, Monica Mehta, and Akhil Shahani.

IFC is proposing an equity investment in the Fund.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	10.0

* These investment figures are indicative

Kaizen Management Advisory Private Limited has its head offices in Mumbai India and does not have branches. Kaizen’s head offices address is 5 Master Chambers, 1 Cinema Road, Mumbai – 400 020, India. The Fund investments will be made throughout India.

The project is expected to have a high development impact in the following areas: Provision of long-term equity capital to institutions in the education sector value chain and thus increasing access to education in India. This type of funding is not readily available in the market. Operational improvements to portfolio companies in the education sector in India through the value add role of the Managers. This will improve the quality and sustainability of education sector institutions in India and make them more attractive to strategic investors. Demonstration of successful private equity investments in an underserved sector, thereby building confidence amongst institutional investors to invest in India and the sector.

IFC’s expected Additionality: Provision of equity financing to small and medium sized enterprises in the education sector in India. Catalytic role – IFC’s commitment would act at a stamp of approval and play a catalytic role in attracting investments to Kaizen and the sector. Value added advice – IFC will contribute to international best practices in the corporate governance and structure of the Fund. Also, through participation in the Advisory Committee, IFC will share its global expertise, resources and knowledge on the education sector to build capacity at the portfolio company level.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC analyzed the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determined the Applicable Performance Requirements. While it is not the primary activity, the fund’s investments may involve construction/ acquisition/ renovation of educational facilities. Based on an analysis of the potential Social and Environmental risks associated with the future sub-projects and considering IFC’s investment, the Applicable Performance

Requirements are:
· The IFC FI Exclusion List
· The applicable National Social and Environmental Laws and regulations; and
· The IFC Performance Standards

IFC also appraised the FI’s HR practices and reviewed the FI’s existing Social & Environmental Management System (SEMS), and FI capacity to implement the same. It was found that the FI has put in place the basic SEMS and has sufficient capacity to implement the same. The FI has satisfactorily informed the IFC regarding its HR management practices and working conditions.

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

· Update its existing SEMS to the satisfaction of IFC, to ensure the compliance with the Applicable Performance Requirements - prior to commitment;
· Commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements; and
· Submit a periodic report to IFC as per a format to be provided by IFC.
· Submit the environmental and social due diligence reports for the first three projects, prior to the Fund’s investment, to ensure that the SEMS is adequate to identify and manage the subproject’s environmental and social impacts."