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.
About IFC
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
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