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Description |
ADB committed to invest up to US$30 million equity in Lombard Asia III (the Fund), not to exceed 25% of the Fund's total size or result in ADB being the largest investor. ADB's participation in the Fund is the third collaboration with Lombard and reflects the outstanding track record, experience, and value-added role of this Fund Manager. |
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Objectives and Scope |
The Fund seeks to obtain superior returns by building a diversified investment portfolio consisting primarily of equity and equity-linked investments in midsize companies, formed and operating in the Asia and Pacific region in sectors where the Fund Manager has prior experience.
Another key objective is to promote corporate governance in its own operations and its investee companies. The expected enhanced value-added provided to the Fund's portfolio companies will serve as a model for other Asian companies and encourage them to adopt best practices, particularly with regards to transparency and compliance with ADB-supported investment and operating policies.
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Linkage to Country/Regional Strategy |
The Fund will directly contribute to resource mobilization, financial intermediation improvement, and investment in private sector projects. Involvement of ADB's public sector window through ADB's regional departments is critical to ensure a strong financial sector reform in entrepreneurial finance. ADB also actively supports efforts to strengthen market governance throughout the region. Sound governance is crucial for capital markets to inspire investor confidence and play an effective role in supporting growth by channeling savings to productive investment. |
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Status of Development Objectives |
The Fund intends to (i) achieve catalytic role in attracting long-term capital to the region and demonstration effect where the expected enhanced value of the portfolio companies will serve as a model to other companies and encourage them to adopt best practices; (ii) actively promote good corporate governance and improvements in investor relations among its portfolio companies; and (iii) contribute to private sector development. |
