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| Foursan Capital Partners I |
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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 | 26160 |
| Company name | Foursan Capital Partners I |
| Country | MENA Region |
| Sector | Collective Investment Vehicles |
| Environmental category | FI |
| Department | Private Equity and Investment Funds |
| Status | Pending Disbursement |
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| Date SPI disclosed | November 12, 2007 |
| Projected board date | December 13, 2007 |
| Previous Events | Signed: June 25, 2008
Approved: June 9, 2008 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Foursan Capital Partners I (the Fund or FCP), is a private equity fund which will make equity and equity-related investments in enterprises located primarily in Jordan and opportunistically in other countries of the Middle East and North Africa (collectively the Region). The Fund will invest with an objective of maximizing long-term capital appreciation and has a committed capital target size of between $100 million and $150 million. In addition, FCP will have use of the Overseas Private Investment Corporation (OPIC) Facility, a $50 million senior term loan. |
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| Project sponsor and major shareholders of project company |
| The Fund will be managed by Foursan Capital Management Company (the Manager or Foursan), wholly-owned by the Foursan Group, a fund management company based in Amman, Jordan. Foursan’s founding partners are Mr. Nashat Masri and Mr. Leith Masri who are well positioned in the business community in Jordan. The founders have experience in private equity and investment banking as well as strong academic backgrounds in economics, business, and law. The two founders will be supported by a number of local investment professionals. |
| Total project cost and amount and nature of IFC's investment |
| The Fund has a target committed capital target size of between $100 million and $150 million. In addition, FCP will have use of the OPIC Facility, a $50 million senior term loan. IFC’s investment in the Fund would be up to $20 million, not to exceed 20% of total commitments. |
| Location of project and description of site |
| The Fund and the Manager will be registered and incorporated in the Cayman Islands. The management team will be based in Amman, Jordan. |
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| Anticipated development impact of the project |
- Private sector development:
The Fund will add value to its investee companies, by providing managerial and strategic support to improve their competitiveness and sustainability.
- Implementation of best practice for corporate governance in portfolio companies:
The Fund will adopt international best practices for corporate governance and management, as well as transparency, thus fostering knowledge and skill transfer, and encouraging best practices across the industry.
- Growth in employment and labor productivity:
The Fund is expected to invest in growth stage companies that will increase employment at a high growth rate.
- Support for Small and Medium Enterprises (SMEs):
Some of the Fund’s investee companies are expected to be SMEs at the time of acquisition. |
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| IFC's expected development contribution |
- Catalyze other funding from foreign institutional and private capital:
IFC's participation will provide comfort to other investors and broaden the Fund’s investor base for successful first and subsequent closings.
- Support an emerging fund manager:
IFC will support the development of the local private equity industry by supporting a local emerging fund manager.
- Fund structuring role:
IFC will provide input to ensure the Fund is structured according to international best practice.
- Institution-building role in fund operations and governance:
IFC will play a governance role through participation on the Fund’s Advisory Board. |
| 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 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;
- 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. |
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| For inquiries about the project, contact: |
Mr. Nashat Masri, Partner
The Foursan Group
P.O. Box 143154
Amman 11814, Jordan
Tel: + 962 6 562 4562
Fax: + 962 6 552 6489
Email: nashat@4san.com
Website: www.4san.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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