AMBER CAPITAL

EU-Armenia SME Fund

Co-founded by Amber Capital, European Union and the EBRD, EU-Armenia SME Fund is the first institutional private equity fund focused solely on investments in Armenia.

Key milestones timeline

April 2016

EBRD announces intention to invest in an Armenia-focused private equity fund and invites prospective fund managers to participate in a competitive process.

September 2019

Amber Capital is officially selected as the fund manager of EU-Armenia SME Fund.

January 2020

EU-Armenia SME Fund holds first closing with total commitments of over USD 30m, including over USD 5m capital committed by Amber Capital’s investment team.

September 2020

Notwithstanding global pandemic, the Fund makes its first investment in Armenia.

January 2021

EU-Armenia SME Fund holds final closing with total commitments of over USD 60 million.

April 2016

EBRD announces intention to invest in an Armenia-focused private equity fund and invites prospective fund managers to participate in a competitive process.

September 2019

Amber Capital is officially selected as the fund manager of EU-Armenia SME Fund.

January 2020

EU-Armenia SME Fund holds first closing with total commitments of over USD 30m, including over USD 5m capital committed by Amber Capital’s investment team.

September 2020

Notwithstanding global pandemic, the Fund makes its first investment in Armenia.

January 2021

EU-Armenia SME Fund holds final closing with total commitments of over USD 60 million.

The Fund is a unique vehicle to facilitate investments in the Armenian economy.

Security and accountability

The Fund is registered in Luxembourg – a top jurisdiction for similar structures. The Fund is administered by a 3rd party AIFM-licensed fund administrator and the Fund’s accounts are audited by Big 4.

Blue chip investor base

EU-Armenia SME Fund’s investor base consists of top-tier professional investors, including international finance institutions, family offices and other institutional investors.

Strong alignment of interests

8.5% 8.5% of AUM invested by the investment team of Amber Capital.

Distribution of investor base

United States of America

Investment volume 24% of AUM

United Kingdom

Investment volume 17% of AUM

European Union

Investment volume 28% of AUM

Armenia

Investment volume 31% of AUM

Investor profile

We are proud to be able to count on the support of our investor base.

European Union

EBRD

FMO

Government of Armenia

Amundi-ACBA Asset Management

C-Quadrat Ampega Asset Management Armenia

The Hirair and Anna Hovananian Fooundation

Diaspora investors

A diversified group of individual investors comprising business leaders and finance professionals․

Investment process

Sourcing

Amber Capital Armenia continuously engages with key stakeholders to identify new investment opportunities. Primary focus is on export-oriented companies with potential for growth and expansion.

01. Sourcing

Due diligence

Potential investee companies are analysed to identify funding needs and potential for growth. Financial, legal, tax and technical due diligence is conducted to have a comprehensive assessment of the investment.

02. Due diligence

Documentation

Share subscription agreement and shareholders’ agreement are negotiated and signed, addressing key matters around corporate governance, strategic initiatives and fund utilisation.

03. Documentation

Investment

Following the signing, new governance structure is set up and funds are transferred directly to the company, allowing the business to immediately focus on the execution of its key objectives.

04. Investment

Governance

It is our firm belief that implementation of high ESG standards is key to creating and sustaining long-term value.

Investment Committee

The Fund’s decisions are taken by its Investment Committee, which includes an independent member from the third party AIFM fund administrator.

Advisory Committee

The Fund’s performance is assessed through regular meetings of the Advisory Committee, which is a platform for key investors to monitor performance and make decisions regarding the Fund’s mandate and governance.

At portfolio company level

Corporate governance

A board of directors is created and regular financial reporting is established to improve governance and decision making standards.

FP&A and accounts

The finance function is enhanced through recruitment of experienced professionals. Annual external audit of financials is commissioned, conducted by international professional services firms.

Environment

The environmental impact of the company is assessed and measures are taken to continuously monitor and mitigate it, allowing for a more sustainable growth trajectory.

Inclusion

Diversity and inclusion practices are benchmarked and targets are set to implement best practices.