EBRD is considering an equity investment of up to USD 50 mln in Prometheus Capital Partners Fund I

Project Description
The EBRD is considering an equity investment of up to USD 50 million in Prometheus Capital Partners Fund I L.P. (the “Fund”), a private equity investment fund, to be registered as a limited partnership under the laws of the Cayman Islands.

The Fund is a first-generation investment fund focused on growth and de-leveraging investments primarily in Russia. Investments in other CIS countries will be considered on an exceptional basis. The typical investment target of the Fund will be mid-market companies in the services and consumer sectors.

Transition Impact
The transition impact and demonstration effects associated with this potential investment are expected to include:

(a) building local institutional quality private equity management with the investment skill set, operational experience and local knowledge required for a sustainable, long-term provider of disciplined PE financing in Russia.

(b) supporting the private equity asset class in Russia, particularly first generation funds, where the Bank will play a countercyclical role in a time when fundraising amongst institutional investors is highly challenging.

(c) improving and enhancing transparency and high standards of corporate governance in portfolio companies through the promotion of international best practices.

The Client
The Fund will be managed by Prometheus Capital Partners Limited, a limited liability company incorporated under the laws of the Cayman Islands, which is owned by the management team.

EBRD Finance
The EBRD is proposing to make an equity investment of up to USD 50 million, not exceeding 30% of the Fund’s total capital commitments.

Project Cost
The target Fund size is USD 350 million at final closing.

Environmental Impact
The project has been assigned a screening category of FI, as the EBRD financing is via a financial intermediary.

The Fund shall comply with the EBRD's Performance Requirement 2 (Labour and Working Conditions) and Performance Requirement 9 (Financial Intermediaries).

The Fund shall ensure portfolio companies comply with national environmental and OHS and labour standards.

The Fund will be required to adhere to the EBRD's Environmental and Social Exclusion and Referral lists, and submit annual environmental and social reports to the EBRD.

Technical Cooperation
None.