January 09, 2009 |
Project number: 39940
Business sector: Equity funds
Environmental category: FI
Board date: 24 March 2009
Status: Passed concept review, Pending final review
Date PSD updated: 8 January 2009
and objectives: The proposed project is a regional mezzanine fund with a target size of EUR 350 million. The Fund aims to invest in mezzanine and equity financing instruments in mid-cap companies in Central European and Balkan countries. The fund will also make selective investments in the Russian Federation, Ukraine and Turkey. Accession Mezzanine Capital III is a follow-on fund to Accession Mezzanine Capital I & II.
Transition impact: The transition impact of the proposed project would come from the following areas:
(i) flexible implementation of mezzanine finance in restructuring and expansion cases for balance sheet optimisation and capital structure rationalisation;
(ii) bridging the funding gap between equity participation and debt provision in acquisition transactions which has widened as a result of the credit tightening, as well as providing additional financing for working capital in already established enterprises;
(iii) support of the further expansion east to Russia, Ukraine and Turkey of an established fund manager;
(iv) utilisation of additional mezzanine financing and promotion of sophisticated forms of capital among investors in the Region.
The client: Accession Mezzanine Capital III, will be established as an English limited partnership. It will be managed by Mezzanine Management Central Europe and will continue the strategy of its predecessor funds, Accession Mezzanine Capital I & II.
EBRD finance: Commitment to invest up to EUR 50 million. It is expected that the other investors may include a range of institutional investors, banks and other private investors, including European and US institutional investors.
Total project cost: The target size of the Fund is EUR 350 million with a maximum of EUR 400 million.