The European Bank for Reconstruction and Development (EBRD), a multilateral financial institution based in London, plans to invest up to USD 20 million in the Da Vinci Private Equity Fund II, which invests in small and medium enterprises (SMEs) operating in the financial infrastructure sector in the Commonwealth of Independent States (CIS), which is composed of the former Soviet republics. The fund has a target size of USD 200 million and is managed by asset manager Da Vinci Capital Management, which has offices Guernsey, Moscow and London. The total amount raised by the fund has not been released.
The intended impact of the investment from EBRD is to promote market expansion, promote the development of financial infrastructure in the region and improve transparency and corporate governance within companies in which Da Vinci invests. The EBRD investment is pending final review within the bank.
In 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion). Financial data on Da Vinci Capital Management is not public.
By Nicole Boyd, Research Associate
About Da Vinci Private Equity Fund II
Da Vinci Private Equity Fund II is managed by asset manager Da Vinci Capital Management, which focuses on private equity investments in Russia and other members of the Commonwealth of Independent States (CIS). The fund’s investments focus on three subsectors: capital market infrastructure, banking and insurance, and related information technology services. Its target size is USD 200 million.
About Da Vinci Capital Management
Da Vinci Capital Management is an asset manager that focuses on private equity investments in Russia and members of the Commonwealth of Independent States (CIS). The company manages two funds, Da Vinci Private Equity Funds I and II and has offices in Guernsey, Moscow and London. According to the company’s website, its investments are typically held for 2 to 5 years and amount to between USD 10 million and USD 25 million of equity capital. Financial data on Da Vinci Capital Management is not public.
About European Bank for Reconstruction and Development (EBRD)
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion).
Sources and Additional Resources:
European Bank for Reconstruction and Development. “Da Vinci Private Equity Fund II,” http://www.ebrd.com/pages/project/psd/2013/44380.shtml
MicroCapital. March 12, 2013, “MICROCAPITAL BRIEF: EBRD Loan of $39m to UniCredit Bank Serbia for On-lending to Small and Medium-sized Enterprises Pending Final Approval,” https://www.microcapital.org/microcapital-brief-ebrd-loan-of-39m-to-unicredit-bank-serbia-for-on-lending-to-small-and-medium-sized-enterprises-pending-final-approval/
MicroCapital. March 8, 2013, “MICROCAPITAL BRIEF: EBRD Plans $200m to Expand Turkish Sustainable Energy Finance Facility (TurSEFF) for Small and Medium-sized Enterprises, Private Households,” https://www.microcapital.org/microcapital-brief-ebrd-plans-200m-to-expand-turkish-sustainable-energy-finance-facility-turseff-for-small-and-medium-sized-enterprises-private-households/
MicroCapital Universe Profile: Da Vinci Private Equity Fund II https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Da+Vinci+Private+Equity+Fund+II
MicroCapital Universe Profile: Da Vinci Capital Management https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Da+Vinci+Capital+Management
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
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