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| AIC Caribbean Fund L.P. |
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| 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 | 26915 |
| Company name | AIC Caribbean Fund L.P. |
| Country | Caribbean Region |
| Sector | Collective Investment Vehicles |
| Environmental category | FI |
| Department | Private Equity and Investment Funds |
| Status | Pend PDS-IR |
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| Date SPI disclosed | March 11, 2008 |
| Projected board date | May 19, 2008 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
The AIC Caribbean Fund L.P. (ACF II or the Fund) is a private equity limited partnership whose objective is to seek long-term capital appreciation by making equity and equity-related investments in a diversified portfolio of companies located in the 20-nation Caribbean regional economic bloc and the Dominican Republic. ACF II is seeking target equity commitments of up to $400 million.
The Fund will be a follow-on fund to the AIC Caribbean Fund I (ACF I or Fund I) which was established in 2002. ACF I invested $260 million which was raised from the AIC Group and was managed by Michael Lee-Chin and a small team. ACF I is fully invested. |
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| Project sponsor and major shareholders of project company |
The Fund will be managed by AIC International Investments (AICGP or the Fund Manager). The Fund Manager is composed of an experienced professional team that has close to 50 years of cumulative experience in key sectors such as consulting, banking, project finance and private equity.
The Fund Manager is affiliated with the AIC Group, a Canadian fund management group with over $8 billion under management in Canada and significant assets and operations in the Caribbean. The founder of the AIC Group, Michael Lee-Chin, is a Jamaican by birth and has risen to be one of the most prominent investors in Canada and the Caribbean region.
ACF II has already generated firm commitments from Development Finance Institutions (DFIs) like the European Investment Bank (EIB) and strategic private sector investors including Verizon. |
| Total project cost and amount and nature of IFC's investment |
| The IFC project team is proposing an equity investment of up to $20 million in the Fund, not to exceed 20% of total capital commitments. |
| Location of project and description of site |
| The Fund plans to make six to eight investments in the Caribbean region with 80% focus on Jamaica, Trinidad and Tobago and the Dominican Republic. |
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| Anticipated development impact of the project |
| The Fund is expected to deliver strong development impacts by providing scarce equity capital in the Caribbean region and by supporting regional consolidation in target industries such as energy, financial services and telecommunications. The Fund will be the largest private equity fund in the region and it is expected to be a strong catalyst for the development of the regional private equity industry. |
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| IFC's expected development contribution |
| IFC’s role in the Fund will be through its industry and regional expertise and its role on the Advisory Committee of the Fund. IFC will be the only investor with strong regional representation in the region and its office network in the region can be leveraged for market intelligence. Through its role on the Advisory Committee, IFC will also be encouraging best practice in governance at the Fund level. |
| 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 Performance Requirements if any, that would include a combination of:
- The IFC FI Exclusion List and/or,
- The applicable National Social and Environmental 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,
- Submit a periodic report to IFC according to a format to be provided by IFC. |
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| For inquiries about the project, contact: |
Mr. Dale LeFebvre, Managing Partner
2445 M Street NW, Suite 250
Washington, D.C. 200037
USA
Telephone: 214-668-6848
E-mail: Lefebvre@35711.com |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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