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Summary of Investment Information
This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein that has been prepared by the project sponsor, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
The SII is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors.
P-BA - Private Equity/Venture Cap Fund - Country
Global Industry, Financial Markets
Date SPI disclosed
November 26, 2012
Projected board date
December 26, 2012
Last Updated Date
November 26, 2012
Signed: March 28, 2013
Approved: March 25, 2013
E&S Risks /Impacts andMitigation
The proposal is for an IFC equity investment in Leopard Bangladesh Fund L.P. (the “Fund”). The Fund will seek to make equity or equity-related investments in mid-sized companies engaged in a broad range of high-growth sectors, including but not limited to agro-industry and food processing, manufacturing, construction materials, financial services, and other service industries such as health care, education and information technology. Investment priority will be given to providing expansion capital to companies with strong growth potential or are undervalued. The Fund will seek to be an active investor, providing guidance in areas critical to growth and expansion, including business strategy, management development, capital structure and governance.
Project Sponsor and Major Shareholders of Project Company
The general partner of the Fund will be Leopard Bangladesh Partners Ltd., (the “General Partner”). The General Partner is an affiliate of Leopard Capital L.P., which has significant experience in private equity investing focusing on frontier markets, particularly in Asia and the Caribbean. The Investment Manager will be led by investment professionals with significant local knowledge and professional experience in Bangladesh.
Leopard Capital was established in 2007 to invest in the world’s least developed countries, and to develop and replicate successful business models across them. In 2008 Leopard Capital launched the first private equity fund for Cambodia, which has since made ten investments. It is now preparing a US$75 million follow-on fund for Cambodia and Laos in addition to the $100 million fund for Bangladesh.
The General Partner will appoint Leopard Capital Bangladesh Limited (the “Investment Manager”) to manage the affairs of the Fund. The Investment Manager will be comprised of a team of up to ten investment professionals based in Dhaka, Bangladesh. The Investment Manager will be additionally supported by Leopard Capital’s Global Team of Investment and operations professionals who will provide advice and assistance with regard to research, due diligence, deal structuring, and deal execution as well as fund administrative and back office functions.
The General Partner has also established an Advisory Board comprised of experienced businessmen with extensive local and regional contacts and industry knowledge that will help source appropriate investment opportunities in Bangladesh and provide advice to the General Partner.
Total Project Cost and Amount and Nature of IFC's Investment
The Fund is targeting US$100 million, including a first close of US$50 million. IFC is proposing an equity investment of up to US$15 million or 20% of capital committed.
IFC investment as approved by Board
15 million (USD)
IFC Investment (million USD)
* These investment figures are indicative
Location of Project and Description of Site
The Fund Manager’s investment team will be based in Dhaka, Bangladesh. The Fund will invest in businesses which have their principal office and/or significant operations in Bangladesh or which have a significant nexus with Bangladeshi companies in terms of expansion of operations into other markets or a value chain partner.
Expected Development Impact
- Private Sector Growth: The Fund is expected to promote the sustainable growth and expansion of medium sized companies that do not have access to other sources of capital -either banks or public markets. As a consequence, the investment climate will also be strengthened by the introduction and implementation of stronger governance and environmental standards. Further by promoting a second PE fund in Bangladesh, IFC will be helping shape the eco-system in the country to be more conducive to this channel of expansion capital.
- Job Creation: The Fund is expected to invest in companies that can increase the number of employees. The younger employee demographic is highly literate and represents an underutilized talent pool which can benefit from increased employment opportunities. Leopard's investment strategy is centered around provision of expansion capital which is usually linked with increased employment opportunity.
- Poverty Alleviation: Bangladesh is an IDA country and, despite it improving macroeconomic fundamentals, nearly a third of its population (53 million) lives below the poverty line. IFC's investment will help grow stable businesses which can generate jobs and contribute tax revenue to improve public services and infrastructure.
- Expansion of Bangladeshi Capital Markets: The success of the Fund could expand the pipeline of capital-markets candidates in Bangladesh and broaden the domestic equity market.
IFC's Expected Role and Additionality
# Signalling effect - Investing in the Leopard Bangladesh fund will send a strong signal to the insitutional investor community that Bangladesh is a viable and attractive destinatination for growth equity. This will not only help Leopard raise additional capital but will also create more interest in other (future) PE funds in the country, hopefully creating another channel of expansion capital for Bangladeshi companies that have limited access to bank debt or public markets.
# IFC Performance Standards - IFC's investment will help establish the fund in accordance with IFC standards and will also result in these standards being transmitted across to the fund's investee companies.
Environmental & Social Categorization Rationale
The deal pipeline and proposed sectors of investment have potentially limited adverse environmental or social risks or impacts that will be few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures. In rare circumstances, it may also include a very limited number of investments with potential significant adverse environmental or social risks or impacts that are diverse, irreversible, or unprecedented. Hence, the E&S risk of the proposed investment is medium and the project is categorized as FI-2
Private Equity Funds Disclosure
In accordance with IFC's Access to Information Policy, IFC will periodically disclose the names, locations and sectors of high-risk sub-projects that have been supported by IFC investments through private equity funds, subject to regulatory constraints and market sensitivities. To date, this fund has not made any high-risk investments with IFC supported funds. This section will be updated accordingly when such investments are made.
Main Environment & Social Risks and Impacts of the Project
Main E&S risk and impacts of the project emanate from Funds investment into sectors such as manufacturing (including RMG & textiles), agro and food processing, health, education and IT. The E&S risks and impacts of investing in these sectors include occupational health and safety, fire and life safety, compliance of core labor standards, waste and pollution management and resource efficiency. In some cases, there could also be concerns on land and biodiversity impacts depending on the nature and location of the investments made by the fund. The fund has a fairly well drafted E&S risk management system in place and has also nominated its SEMS officer.
Mitigation Measures/ ESAP
Anticipated completion Date
Upgrade the SEMS including guidelines for its implementation
prior to Commitment
Training of relevant investment staff on SEMS implementation
prior to Disbursement
For inquiries about the project, contact:
Leopard Capital LP
Loon Kee Building, Suite 1208
267-275 Des Voeux Road Central, Hong KongEmail: email@example.com
For inquiries and comments about IFC, contact:
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
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