Turkish Private Equity Fund II L.P.

Summary of Proposed Investment

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.

Project number	25504
Company name	Turkish Private Equity Fund II L.P.
Country	Turkey
Sector	Collective Investment Vehicles
Environmental category	FI
Department	Private Equity and Investment Funds
Status	Active

Date SPI disclosed	December 12, 2006
Projected board date	February 28, 2007
Previous Events	Invested: August 8, 2007 Signed: May 21, 2007 Approved: March 29, 2007

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

Turkish Private Equity Fund II L.P. (TPEF II or the Fund) is a closed-end private equity fund formed by Turk Venture Partners Limited (Turkven or the Manager), which will make equity and equity-related investments in companies located primarily in Turkey and opportunistically in neighboring countries of Southeastern Europe and Central Asia. Target industries will include consumer products and services, distribution, energy, healthcare, logistics, media, telecom, and technology.

Anticipated development impact of the project

Project Development Impact:

- Private sector development:

The Fund will add value to its investee companies, by providing managerial and strategic support to improve their competitiveness and sustainability.

- Adoption of best practice for corporate governance and environmental standards:

The Fund will adopt international best practices for environmental and social risk assessment and management, as well as transparency and corporate governance, thus fostering knowledge and skill transfer, and encouraging best practices across the industry.

- Support for Small and Medium Enterprises (SMEs):

The Fund is expected to allocate a substantial part of its capital for SMEs.

IFC's expected development contribution

IFC’s role includes:

- Fund Structuring:

IFC will work closely with the Manager to ensure the Fund’s structure and terms are in line with IFC and international standards.

- Governance of the Fund:

IFC will seek to play a governance role through participation on the Fund’s governing structures.

Environmental and social issues - Category FI

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will analyze the Fund’s expected portfolio and sectors of investment and determine the Applicable Requirements if any, that would include a combination of:

- The IFC FI Exclusion List and/or
- The applicable National Environmental and Social Laws and regulations and/or
- The IFC Performance Standards

IFC will also review, if required, the capacity of the Fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). IFC may suggest Supplemental Actions to address any gaps in the SEMS if required.

The Fund Manager will be required to:

- Develop an, or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS to ensure that its investments/activities are in compliance with the Applicable Requirements;
- Take action to remedy any gaps in SEMS implementation on an ongoing basis;
- Submit a periodic report to IFC as per a format to be provided by IFC.

IFC PROJECTS