The Fund will be managed by BanyanTree Capital Advisors Limited (“Fund Manager”), which was established in Mauritius as a company with limited liability. The Fund Manager will enter into an investment advisory agreement with BanyanTree Finance Private Limited (“Fund Advisor”), a company incorporated under the Indian Companies Act, 1956.

BanyanTree Growth Capital II has a target fund size of US$150-175 million. IFC is proposing an equity investment of US$25 million or 20% of the Fund’s total committed capital.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	25.0

* These investment figures are indicative

The Fund is a Mauritius private limited company, and will operate primarily through one or more subsidiaries
formed in the Republic of Mauritius, which will acquire, own and operate the portfolio of investments. The Fund
Advisor is based in Mumbai, India.

1) Jobs: Like with all the SME growth fund investments, the provision of expansion capital to companies at a crucial inflexion point in their development is the most effective way to impact job creation. This funds ability to reach companies that would not ordinarily access PE capital on account of dilution fears makes their capital even more impactful
2) Private sector development: An investment in this fund will serve to enhance IFC''s mandate of developing the ecosystem for private enterprise to thrive by promoting SMEs, their suppliers, customers, providers of capital and potential acquirers. This is particularly relevant given the fund''s focus on the manufacturing and industrial segments of the Indian economy

1) Catalyst effect: Although the fund has been backed by DEG and FMO in the past, an investment by IFC would be a strong signal to the US and Asia based investment community.
2) Mobilisation: IFC''s participation will also likely increase access to debt capital to these capital constrained SMEs as banks take greater comfort in the investor base of the fund that is trying to arrange debt.
3) Standards: While the fund has committed to implementing IFC standards on ESG, having IFC as an investor and a potential co-investor will ensure a tight adherence to and propagation of our standards and our global expertise.

This project involves IFC investment in a sector agnostic private equity fund and has been classified as Category FI. The fund''s will primarily make equity investment in fast growing SMEs which could include IT, manufacturing and engineering sectors among others. These sectors are likely to have Environmental and Social concerns mainly around Occupational Health & Safety (OHS), Labor, air & water pollution and waste management.

The Applicable Performance Requirements for the sub-projects financed by the fund will include: IFC FI Exclusion List, the applicable Indian E&S laws and regulations, and the IFC Performance Standards.

The fund manager has been backed by FMO and DEG and hence has an operational SEMS in place. The fund manager is aware of IFC E&S requirements and has agreed to upgrade the SEMS to IFC''s satisfaction. The fund manager will be required to: 1) upgrade the existing Social and Environmental Management System (SEMS) satisfactory to IFC prior to subscription and commit to implement the SEMS to ensure that its investments/activities are in compliance with the Applicable Performance Requirements; 2) identify responsible, qualified person(s) to manage and implement the SEMS; and 3) submit a periodic report to IFC in the format to be provided by IFC.

IFC will also review the implementation and performance of the fund''s SEMS for the first few projects, and all Category A projects if any, prior to the fund''s investment, to ensure the fund''s SEMS is adequate to assess and manage E&S risks.