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US$ 15 million private venture capital fund established for Croatia
A new investment vehicle to finance small and medium-sized enterprises in Croatia has been established by Zagrebacka Banka, one of Croatia's leading commercial banks, in partnership with the European Bank for Reconstruction and Development (EBRD) and CCP Capital Ltd, a venture capital company based in Jersey, UK. As the country's first private venture capital fund, Capital Croatia Partnership Ltd will have an initial capital of US$ 15 million (ECU 13.3 million), of which the EBRD is investing US$ 5 million (ECU 4.4 million). Up to US$ 30 million (ECU 26.5 million) is expected to be raised by mid-1998.
Jacques de Larosière, President of the EBRD, said: "Croatia's companies need financial capital on a long-term basis to enable them to grow. By investing in this venture fund, the EBRD can assist in the development of a viable private sector, encourage other investors into the market and use its own resources more effectively."
To manage the fund, CCP Capital Ltd is setting up an operation in Croatia, staffed by experts with successful track records in central and eastern Europe, particularly in Poland, where they have been managing a similar fund with positive results.
Franjo Lukovic, Zagrebacka's President, commented: "This is an important development for us and for Croatia's financial markets. This new product will be instrumental in channelling key funds to the private sector and in establishing a market benchmark. It reflects Zagrebacka's current operational status that we have been able to launch the fund with our partners at this time."
The fund will run for a maximum of ten years and will invest in existing small and medium-sized enterprises in the private sector or those undergoing privatisation. Investments will range from US$ 500,000 to US$ 1.5 million. The fund will be operational shortly, with an office open in Zagreb in early December. First investments are expected by spring or early summer of 1998.
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