The Fund will be domiciled in Mauritius and managed by Cauris Capital Partners II (“Cauris”, “Fund Manager” or “Manager”), a local fund manager based in Lome, Togo with a track record managing SME investments in two previous funds in the same WAEMU region including challenging IDA countries. The Fund Manager currently has three partners from Togo. Noel Yawo Eklo, Togolese, joined Cauris in 1995 and was a co-founder of Cauris Management the fund manager in 1997. He became CEO in 2002 and led changes in the fund’s strategy which led to successful exits and the raising of a follow-on fund. Prior to joining Cauris, Noel was deputy accountant at Hypermarche Auchan in France and auditor at FICAO in Lome, Togo. He is a graduate of Ecole Supérieure d’Informatique et de Gestion de Paris and Ecole Supérieure de Gestion de Paris France. Visseho Thierry Gnassounou, Togolese, joined Cauris in 2001 and is in charge of the Abidjan office. Prior to joining Cauris, Thierry was auditor at Afrique Audit and Consulting in Lome, Togo. He holds a Bachelor Degree in Economics and M.S. in Finance from the University of Montreal. Lolo Kouassi Nolitse, Togolese, joined Cauris in 1996 and is among the co-founders of Cauris Management in 1997. Prior to joining Cauris in 1996, Lolo was an analyst at a consulting firm in Lomé. He holds a Master degree in Management from the University of Lomé. In addition to the three partners, there are three investment staff as follows: Constant Kouamé-Kra, Ivoiran, Associate, Schola Laban, Togolese, Analyst and Timothée Kokou Akodo, Togolese, Accounts Manager. The Manager has plans to hire additional staff in 2011 including an experienced Vice President.

The Fund reached first closing of €45million in October 2010 and plans to reach the target total fund size of €60 million by October 2011. IFC proposes an equity investment not exceeding 20% of the Fund.

7.22 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	7.22

* These investment figures are indicative

The Fund will be a private company limited by shares and incorporated in Mauritius. The Fund operates offices in Lome, Togo and Abidjan, Cote d’Ivoire. The Fund aims to invest mainly in WAEMU countries.

The Fund will achieve development impact by increasing access to financing for small and mid-sized companies in Francophone West Africa which are largely ignored by the larger funds; investing in frontier markets such as Benin, Burkina Faso, Guinea, Mali, Niger and Togo, supporting a local emerging Fund Manager in the region; investing in growth companies of a local emerging Fund Manager in the region; providing hands-on monitoring and guidance to the management of SME companies through board/management participation; sharing environmental and social international best practices with a local SME Fund Manager. The investment is expected to create above average employment and accelerate economic growth across the region. The investment will be across a diversity of sectors. The Fund's investment in target companies will range from Euro 2-4.5 million and will consist mainly of strategic minority stakes, with board representation and shareholder right to influence the strategic direction of the company and conduct of management.

i) IFC will assist in shaping the terms and governance to reflect international emerging markets best practice in particular, environmental and social standards. ii) IFC's support and active participation on the Funds' Advisory Committee will contribute to improved governance at the fund and the investee 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 FI’s potential portfolio pipeline and sectors of investment and determined the Applicable Performance Requirements based on an analysis of the potential social and environmental risks associated with the expected portfolio, and considering IFC’s investment. The Fund will target high-growth SMEs in the West Africa Economic Monetary Union (WAEMU) and neighboring countries such as Guinea, Mauritania, Ghana and Cape Verde. The industry sectors of the pipeline investments analyzed are generally of a medium risk nature.

The Applicable Performance Requirements are the IFC Exclusion List, the applicable Social and Environmental Laws and Regulations of relevant countries, as well as the IFC’s Performance Standards. IFC also reviewed the Funds existing Social and Environmental Management System (SEMS), and capacity to implement the same. It was found that the Fund has an SEMS, and capacity to implement it, which needs be enhanced to ensure compliance with IFC’s policy requirements.

Based on the Applicable Performance Requirements, and Fund SEMS and capacity review, the project will be required to: (i) Upgrade its SEMS prior to commitment; (iii) Provide IFC with the Social and Environmental Due Diligence for the first three investments, prior to the Fund’s investment, to enable IFC to review the implementation and performance of the client’s SEMS; (iv) Submit a periodic report to IFC as per a format to be provided by IFC.