The EBRD informed that its Board of Directors will consider the issue of subscription for 10% equity stake in the Fund on 29 April.
"The Bank is ready to acquire 10% stake for US$10 million in the Fund, charter capital of which should make US$100 million," it was reported.
IFC endorsed the investment on 25 October, signed a relevant agreement on 23 November and made investments on 18 December 2007. About US$6 million of its investment is designed for Azerbaijan.
EBRD indicates that at least 70% of the Fund’s capital will be invested in Kazakhstan with the remaining amount in the other target countries.
The Fund will consider investments in the range of US$2 to 10 million per company.
EBRD expects that the Fund will promote to development of private equity market in the target countries; demonstration that private equity funds are a sustainable form of financing; transfer of technical, operational and financial skills to the portfolio companies; and improvement of corporate governance.
Through local investment teams in Almati (Kazakhstan) and Baku (Azerbaijan) the Fund’s target industries will include consumer goods, food processing, oil and gas-related services, pharmaceutical, telecom, construction materials, financial services and logistics. The Fund is also ready to make investments in small and medium-sized enterprises (SMEs).
Aureos, established in 2001 as a joint venture between CDC and Norfund, is a private equity group which focuses on investing in SMEs in emerging markets. The Fund is given technical support from Aureos Advisers Ltd in London and Aureos Capital Ltd in Mauritius.