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| Saratoga Asia II, 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 | 25722 |
| Company name | Saratoga Asia II, L.P. |
| Country | East Asia and Pacific Region |
| Sector | Collective Investment Vehicles |
| Environmental category | FI |
| Department | Private Equity and Investment Funds |
| Status | Active |
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| Date SPI disclosed | March 28, 2007 |
| Projected board date | May 24, 2007 |
| Previous Events | Invested: December 20, 2007
Signed: November 13, 2007
Approved: July 10, 2007 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Saratoga Asia II, L.P. (Saratoga II or the Fund) is a 10-year closed-end private equity fund formed by Sarataoga Ilmu Ltd. (the Manager), which is seeking up to $300 million in capital commitments to make control-oriented equity investments in natural resources, infrastructure and distressed situations. While at least 50% of the Fund’s commitments will be invested in Indonesia, no more than 20% will be deployed in any one of the remaining Focus Countries (the Philippines, Thailand, and Vietnam). No more than 20% of the Fund’s commitments will be deployed in Malaysia, Singapore and any other Part I countries on a combined basis. |
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| Project sponsor and major shareholders of project company |
| The Manager will be led by Edwin Soeryadjaya and Sandiaga Uno who have worked together since 1998 and managed the Saratoga Capital Group, an informal Indonesian country fund that raised capital for investments on a deal-by-deal basis. The Manager intends to raise Saratoga II as an institutional fund with a formal fund structure and governance, and has recruited Kay Mock, a senior investment professional from the Government of Singapore Investment Corporation (GIC) to meet this need. In addition, the Manager is in advanced stages of hiring more investment professionals with experience in private equity, investment banking and strategic consulting in Southeast Asia. |
| Total project cost and amount and nature of IFC's investment |
| It is proposed that IFC invest up to $25 million. |
| Location of project and description of site |
| The Fund is formed as a Cayman Islands exempted limited partnership. The Manager currently maintains offices in Jakarta, Indonesia and Singapore. |
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| Anticipated development impact of the project |
Saratoga II is expected to deliver the following development impact:
- Promote private sector growth:
The Fund will help private companies in Southeast Asia grow revenue, profitability, employment and labor productivity by providing risk capital and operational guidance.
- Enhance corporate practices:
The Fund will help portfolio companies adopt better practices in corporate governance, social and environmental standards.
- Improve public infrastructure and people’s lives:
The Fund will invest in power plants, toll roads, palm oil plantations and other similar projects which will create jobs, improve public infrastructure and the welfare of the community. |
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| IFC's expected development contribution |
IFC’s role includes:
- Capital mobilization:
IFC’s commitment will help a first-time fund attract enough capital to achieve a first close and eventually reach a critical fund size.
- Private institution building:
IFC expects to sit on the Fund’s Advisory Board and to play an active role in ensuring the Fund adopts best practice fund management and governance. |
| 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, 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, and
- 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: |
Kay Mock
General Partner
Saratoga Emas Ltd.
3 Phillip Street
#15-01 Commerce Point
Singapore 048693
Sandiaga Uno
Jl. Teluk Betung No. 38
Jakarta 10230
Indonesia
Telephone: 62-21-310-1917
Fax: 62-21-310-6211 |
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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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