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| Samara Capital Partners Ltd |
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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 | 25790 |
| Company name | Samara Capital Partners Ltd |
| Country | India |
| Sector | Collective Investment Vehicles |
| Environmental category | FI |
| Department | Private Equity and Investment Funds |
| Status | Active |
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| Date SPI disclosed | May 24, 2007 |
| Projected board date | June 25, 2007 |
| Previous Events | Invested: April 4, 2008
Signed: March 3, 2008
Approved: November 15, 2007 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Samara Capital Partners Fund I Limited (Samara Capital or the Fund) is a private equity fund which will invest in small and medium-sized enterprises (SMEs) in India. The Fund’s objective is to invest in deals of under $20 million, and to provide active involvement in the investees’ operational and financial management in order to accelerate their growth and development and thereby achieve superior long-term capital appreciation. The Fund will target companies with strong growth potential in industries such as financial services, media and telecom, secondary infrastructure, pharmaceuticals, and information technology. |
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| Project sponsor and major shareholders of project company |
| The Fund will be managed by Samara Capital Management Limited (Samara or the Fund Manager), whose three partners include Mr. Sumeet Narang, Mr. Gautam Gode and Ms. Radhika Dubash – former investment professionals at the India office of Citigroup and Citigroup Venture Capital International (CVC). Samara’s team members have diverse skills in corporate finance, structured finance, and private equity. |
| Total project cost and amount and nature of IFC's investment |
| Samara Capital has a target size of about $125 million. IFC’s proposal is to invest up to $10 million of the Fund’s total commitments. |
| Location of project and description of site |
| The Fund will be formed as a company under the laws of Mauritius and will have a local advisory team based in India. |
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| Anticipated development impact of the project |
The anticipated development impacts through this investment are as described below:
- 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):
The Fund is expected to allocate its capital to SMEs. |
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| IFC's expected development contribution |
IFC’s expected contribution to the Fund is:
- IFC’s catalytic role:
IFC's participation in the Fund will add credibility to Samara Capital and increase the chances of broadening the Fund’s investor base by attracting institutional investors.
- Support an emerging fund manager:
IFC will support the development of the local private equity industry targeting SMEs by helping grow a local first time fund manager.
- Institution building role in fund operations and governance: IFC will help establish reporting standards, and provide corporate governance and anti-money laundering guidelines.
- Fund structuring role:
IFC is helping structure the Fund according to IFC and international best practice, thereby ensuring adequate investor protection. |
| 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: |
Sumeet Narang, Managing Director
Samara Capital
413 Maker Chambers V
Nariman Point
Mumbai 400 021, India
India Cell: +91 99677 12200
E-mail: sumeet@samaracapital.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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