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IFC Global Private (PE) Equity Funds Role of PE in Development A PE F und for Haiti June 2012

IFC Global Private (PE) Equity Funds Role of PE in Development A PE F und for Haiti June 2012. Who is IFC? What Do We Do? . IFC is the largest global development institution focused on the private sector in emerging markets (“EM”).

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IFC Global Private (PE) Equity Funds Role of PE in Development A PE F und for Haiti June 2012

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  1. IFC Global Private (PE) Equity FundsRole of PE in DevelopmentA PE Fund for Haiti June 2012

  2. Who is IFC? What Do We Do? • IFC is the largest global development institution focused on the private sector in emerging markets (“EM”). • We create opportunity for people to escape poverty and improve their lives, through investing. • We invest,advise, mobilize capital, and manage assets providing innovative solutions for a more inclusive and sustainable world. • We were founded in 1956as the World Bank’s (WB) private sector arm. • IFC has 184 member countries.

  3. IFC and EM PE Funds • IFC has invested $3 billion in about 200 PE funds, and focuses on frontier countries. • PE provides equity capital and expertise and can significantly impact company growth and job creation. • PE is an effective way to support small companies in small countries. • IFC backs local first-time fund managers in EM. • IFC requires environmental, social and governance standards for all investments. • Since 2007 over half the PE funds supported by IFC have been in the world’ s poorest countries. SMEs account for about 2/3 of our investments. • IFC invests no more than 20% in the Funds and helps mobilize other investors. • We estimate that our PE funds’ investments have created about 300,000 new jobs over the last 10 years.

  4. Why Did We Invest in Haiti? Why Haiti? • IFC and WB are very active. WB wanted to involve private sector and create jobs, moving away from relief aid after the earthquake. • Widespread unemployment and lack of opportunities. • Demonstration effect of IFC investment in poorest countries catalyzes other investors. What are the opportunities we see? • Family-owned businesses that were thriving before earthquake needed equity and advisory services to rebuild and expand. • Successful entrepreneurs from the Diasporaare coming back. Great opportunity! • PE is an ideal way of channeling funds and expertise to Haiti’s small businesses as well as boosting standards and improving corporate governance.

  5. How Did We Invest? • In March 2012: IFC subscribed up to $10M in Leopard Haiti Fund. • Leopard Haiti has a local team in Port au Prince, and experience in frontier investing. • Fly-in fly-out investment does not work. Beinga local fund manager is critical. • Access, reputation checking, due diligence, management, acquiring talent are all highly local. What is the strategy of the Fund? • Investing sectors: low- and medium-income housing, construction, agribusiness, IT, Telecoms, and hospitality. These sectors showed potential before the earthquake. • Enhancing corporate governance and environmental and social standards of its portfolio companies… and peers! • IFC helped mobilize $15M from other investors. At second close, we expect to mobilize $50M in equity from the diaspora and private capital for SMEs. • Raising an additional $4M for an Advisory Services facilityto provide support to SMEs pre- & post-investment.

  6. Thank You !Sergio PomboInvestment OfficerGlobal PE and Investment FundsInternational Finance Corporation (IFC) The World Bank Groupemail: spombo@ifc.org

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