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EBRD invests in venture capital fund for Bulgaria
The European Bank for Reconstruction and Development (EBRD) has signed an equity investment in the EuroMerchant Balkan Fund, a venture capital fund that will invest primarily in small and medium-sized Bulgarian joint-ventures with foreign partners and promising medium-sized private Bulgarian companies.
The EBRD will be a lead investor in the Fund with a committed investment of US$ 8.3 million (ECU 6.4 million equivalent). The Fund closed on 15 December 1994 at US$ 27.3 million, an amount higher than the originally expected closing amount of US$ 25 million. The Fund's sponsor is EuroMerchant Bank, the Athens-based merchant bank of the Latsis banking group. The International Finance Corporation is investing US$ 5 million.
David Hexter, Director of Financial Institutions at the EBRD, said: "By supporting the formation of joint ventures, the Fund will help increase foreign investment in Bulgaria. It also will promote privatisation by providing equity to Bulgarian companies and will help foster an entrepreneurial culture in Bulgaria through its involvement with those companies."
Global Finance, a venture capital management company and an affiliate of Baring Venture Partners, will be the Fund's manager. It will take a hands-on approach to the management of the Fund by devoting a team of full-time professionals and setting up an office in Sofia, Bulgaria, to complement its Athens operation.
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