Summary of Proposed Investment
Project Number
9850
Company Name
SEAF Trans-Balkan Fund LLC
Date SPI Disclosed
Jan 12, 2000
Country
World Region
Industry
other
Status
Completed
Sector
Private Equity/Venture Cap Fund - Regional
Department
Equity Portfolio Management
Environmental Category
FI
Previous Events
Approved : Jun 12, 2000
Signed : Oct 25, 2000
Invested : Dec 5, 2000
Project Description
- Technical Partner and/or Major Shareholders
The manager for the Small Enterprise Assistance Funds (SEAF) Trans-Balkan Fund (the Fund) is SEAF, a not-for-profit company that operates small and medium-sized enterprise (SME) venture capital funds on a commercially sustainable basis. With approximately $78 million under management and headquarters in Washington, D.C., SEAF manages ten country and regional funds in Europe and South America. SEAF shareholding in the Fund will be approximately 16% with remaining capital commitments to be confirmed. Potential participants in the Fund include the Netherlands Development Finance Corporation (FMO), the German Finance Company for Investment in Developing Countries (DEG), and the Finnish Fund for Industrial Development Cooperation (FinnFund).
- Project Cost Including proposed IFC investment
The SEAF Trans-Balkan Fund has a target capital size of $25 million and IFC''s equity investment is expected to be up to $5 million, for up to 20% of the Fund''s capital.
- Location of project and Description of site
The SEAF Trans-Balkan Fund will make equity and equity-related investments in SMEs in Romania, Croatia, Bosnia, Macedonia, Albania, and Bulgaria. Investments will be made directly by the Fund and through investment in existing and future SEAF country funds in the Balkan region.
- Description of Company and Purpose of Project
The Trans-Balkan Fund is a private equity fund that will make equity and quasi-equity investments in the range of $0.1 million to $0.5 million in SMEs with demonstrated growth potential in the Balkan region. Important impediments to the development of the SME sector in the Balkan region are lack of access to equity capital, scarce long-term financing, and limited technical and business training. This investment provides IFC with the opportunity to provide long-term equity finance to a range of SMEs operating in a difficult environment. The Fund will also directly contribute to enhancing entrepreneurship, competitiveness and efficiency in this sector by providing substantial pre- and post-investment support to the investee companies.
IFC''s investment in the Fund is expected to be catalytic in attracting additional investors into the Fund and, on a wider scale, providing confidence to foreign direct investors.
- Environmental Category and Issues
This is a Financial Intermediary Type 2 (FI-2) project according to IFC''s environmental and social review procedure. The Fund will be required to undertake an environmental review of eligible investee companies'' operations in order to ensure compliance with host country requirements, IFC environmental and social safeguard policies, and if applicable, World Bank Group environmental, health, and safety guidelines. IFC will assess the Fund''s capability to carry out environmental reviews of each investee company.
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact:
Corporate Relations Unit
Telephone: (202) 473-7711
Fax: (202) 974-4384
The manager for the Small Enterprise Assistance Funds (SEAF) Trans-Balkan Fund (the Fund) is SEAF, a not-for-profit company that operates small and medium-sized enterprise (SME) venture capital funds on a commercially sustainable basis. With approximately $78 million under management and headquarters in Washington, D.C., SEAF manages ten country and regional funds in Europe and South America. SEAF shareholding in the Fund will be approximately 16% with remaining capital commitments to be confirmed. Potential participants in the Fund include the Netherlands Development Finance Corporation (FMO), the German Finance Company for Investment in Developing Countries (DEG), and the Finnish Fund for Industrial Development Cooperation (FinnFund).
- Project Cost Including proposed IFC investment
The SEAF Trans-Balkan Fund has a target capital size of $25 million and IFC''s equity investment is expected to be up to $5 million, for up to 20% of the Fund''s capital.
- Location of project and Description of site
The SEAF Trans-Balkan Fund will make equity and equity-related investments in SMEs in Romania, Croatia, Bosnia, Macedonia, Albania, and Bulgaria. Investments will be made directly by the Fund and through investment in existing and future SEAF country funds in the Balkan region.
- Description of Company and Purpose of Project
The Trans-Balkan Fund is a private equity fund that will make equity and quasi-equity investments in the range of $0.1 million to $0.5 million in SMEs with demonstrated growth potential in the Balkan region. Important impediments to the development of the SME sector in the Balkan region are lack of access to equity capital, scarce long-term financing, and limited technical and business training. This investment provides IFC with the opportunity to provide long-term equity finance to a range of SMEs operating in a difficult environment. The Fund will also directly contribute to enhancing entrepreneurship, competitiveness and efficiency in this sector by providing substantial pre- and post-investment support to the investee companies.
IFC''s investment in the Fund is expected to be catalytic in attracting additional investors into the Fund and, on a wider scale, providing confidence to foreign direct investors.
- Environmental Category and Issues
This is a Financial Intermediary Type 2 (FI-2) project according to IFC''s environmental and social review procedure. The Fund will be required to undertake an environmental review of eligible investee companies'' operations in order to ensure compliance with host country requirements, IFC environmental and social safeguard policies, and if applicable, World Bank Group environmental, health, and safety guidelines. IFC will assess the Fund''s capability to carry out environmental reviews of each investee company.
| Date SPI sent to InfoShop | January 12, 2000 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact:
Corporate Relations Unit
Telephone: (202) 473-7711
Fax: (202) 974-4384
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