Warsaw, Poland, April 26, 2018—IFC,
a member of the World Bank Group, and the IFC Global Emerging Markets (GEM)
Fund of Funds, a fund managed by IFC Asset Management Company (AMC) are
investing 53 million euros in a new private equity fund raised by Innova
Capital to boost access to capital for mid-sized Polish companies, strengthen
local capital markets, and promote investment in innovation and technology.
The financing package consists of a 20 million euros equity investment
from IFC and a 33 million euros equity investment from AMC’s GEM Fund.
The joint investment will increase the
availability of equity-based finance for companies in financial services
and fintech, telecommunications, logistics, information technology, consumer
services, and other sectors.
“Our partnership with IFC will provide the necessary confidence to other
potential investors, and bring strong environmental and social expertise
into our operations,” said Krzysztof Kulig, Senior Partner at Innova Capital.
“With the new fund, we will be able to target mid-sized companies that
are often too small for global players, but critical for the sustainable
development of Polish private businesses.”
IFC will also help Innova Capital enhance environmental and social standards
in its portfolio companies. The Innova/6 Fund will apply IFC’s environmental
and social standards, and help its investee companies address any specific
issues or concerns that may arise.
“Developing capital markets is one of IFC’s strategic priorities in Poland,”
said Thomas Lubeck, IFC Regional Manager for Southern and Eastern Europe.
“By supporting a leading local private equity fund, we hope to send a
strong positive signal to other investors thinking of entering the Polish
private equity market”.
Innova Capital has confirmed the first close of its Innova/6 fund at 194
million euros, and plans to raise additional capital to reach the hard
cap of 325 million euros within a year.
IFC began investing in Poland more than 25 years ago and has supported
several projects in the construction materials, hospitality, financial
markets, and other sectors. In line with the World Bank Group’s Country
Partnership Strategy for Poland, IFC in now looking to support projects
in areas where it can have a catalytic effect, facilitate resource mobilization,
co-finance European Union-funded projects, and support the international
expansion of Polish companies.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org
About IFC Asset Management Company
IFC Asset Management Company LLC (“AMC”) is a wholly-owned subsidiary
of IFC. AMC manages funds on behalf of a wide variety of institutional
investors, including sovereign funds, pension funds, and development finance
institutions. AMC invests in IFC transactions and leverages IFC's extensive
footprint, network and track-record of investing in emerging markets. All
its investments adopt IFC's ESG Performance Standards. AMC manages more
than $10 billion across thirteen funds. Learn more at www.ifcamc.org