|
EBRD invests in Pioneer Poland Fund
A new investment fund for Polish companies is being established with help, in
the form of a US$ 7.5 million equity investment, from the European Bank for
Reconstruction and Development (EBRD). The Pioneer Poland Fund is targeted at
medium-sized Polish companies, either private or privatising, operating in
traditional industries where Poland has held a competitive advantage, such as
leather and wood as well as newly developing industries such as retail
distribution and computer services.
Charles Wrangham, Director of the Poland team at the EBRD, said: "One of the
target groups for the Fund is companies selected for the Mass Privatisation
Programme (MPP), which the EBRD is supporting in a number of ways. Equity
investment is one of them. Pioneer will not only provide Polish companies with
capital but also with managerial skills which are as important as financial
assistance."
"The Pioneer Group is very pleased to be the Fund's manager and to be
investing jointly with EBRD," said Alicja Malecka, member of the Pioneer
Group's Management Board and the head of Pioneer's Poland operations. "In
addition, the Fund will contribute to the further development of the Polish
capital markets," noted David Hartford, Chief Investment Manager of the Fund.
The Fund, once fully closed, will have a target size of US$ 50 million
(minimum US$ 35 million), including US$ 5 million investment from the Pioneer
Group, which is one of the most experienced Western investment management
companies operating in Poland.
Potential investments include private companies owned by Polish entrepreneurs
and companies participating in the MPP. Also eligible will be companies
privatised through the liquidation or leasing methods, as well as companies
owned by Voivods (local authorities) and in the process of being privatised.
Investments will range from US$ 500,000 to US$ 5 million, and the managers
already have six companies under consideration for investments totalling US$ 9
million.
As at 30 November 1994, the EBRD had approved ECU 809 million of private
sector financing, of which ECU 260 million is targeted at the Polish finance
sector and covers investment funds, credit lines, equity investments and
bank-to-bank loans.
|
