Project description
and objectives:
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The proposed project is a private equity fund targeting small and medium-sized
enterprises with annual revenue of EUR 10-100 million in the Central and
South-eastern European region (new EU members and associate members). Sectors
targeted include consumer products, business services, engineering and light
manufacturing. The Fund is sponsored by the French banking group Société
Générale. The fund will make investments geared towards increasing investee
company market share and optimising company productivity through, for example,
add-on acquisitions of competitors or the launch of new product or service
lines.
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Transition impact:
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Debt financing for companies in the developing Eastern European countries is
limited. The equity financing provided by the EBRD and other investors in this
project is vital for the sustainable development of these local companies.
EBRD’s role as an investor in the Fund will consolidate other investors and
attract more private equity to the region of investment.
As the project will be targeting local SMEs that will be developed and
improved with western know-how, there will be opportunities for knowledge and
skill transfer from western experts. The competitiveness of investee companies
will increase, thereby developing local markets and strengthening the position
of local companies to the point that eventually they could compete on an
international level.
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The client:
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The French banking group Société Générale will sponsor the Fund, providing 30%
to a maximum EUR 50 million of the Fund’s aggregate commitments. The
Investment Manager will be the group’s private equity arm, SG AM Alternative
Investments S.A., which oversees EUR 1 billion in assets through 11 funds,
worldwide, including two Eastern Europe expansion capital funds: Baltic
Republics Fund and SG Romania Fund.
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EBRD finance:
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The EBRD proposes an equity investment of 20% of the aggregate fund size to a
maximum EUR 30 million.
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Total project cost:
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Total fund size is estimated at EUR 200 million for the final closing. The
first closing target is EUR 80 million.
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Environmental impact:
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This project has been screened FI. The Fund will be required to adopt and
implement the EBRD’s Environmental Procedures for Funds which includes
compliance with the EBRD’s Environmental Exclusion and Referral List and
provision of an Annual Environmental Report. Investee companies will be
required to comply, at a minimum, with national standards for environment,
health, safety and labour.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr. Fabrice CALLET, Managing Director
SG AM Private Equity, Eastern
Europe
170, place Henri Regnault,
92043 Paris - La Défense
Tel: +33 (0)1 56 37 79 58;
Fax: +33 (0)1 56 37 86 47
Email: FABRICE.CALLET@sgam.com
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EBRD contact:
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Safiatou Lawson, Operation Leader: lawsons@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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