Announcement of IFC Invests 7.5 Million US Dollars in Venture Capital Fund in China on November 16, 1993

IFC INVESTS US$7.5 MILLION IN VENTURE CAPITAL FUND IN CHINA WASHINGTON, D.C., Nov. 16 - The International Finance Corporation (IFC) is to invest up to $7.5 million in China Walden Investments Ltd., an off-shore venture capital investment fund that will invest in unlisted securities in the People's Republic of China. IFC will also invest up to $10,000 in China Walden Management Ltd., an off-shore venture capital management company that will serve as manager of the fund. Both companies are to be established in the Cayman Islands. This is IFC's first investment in a venture capital fund in China. The fund, with a minimum size of $25 million and a target size of $50 million, will have a ten-year life. Institutional investors from the U.S., Europe, and Asia are likely to be the primary sources of investment for the fund. China Walden Management Ltd. is expected to be capitalized at $100,000. It is being established by the Walden Group, a U.S.-based international venture capital management company with a strong presence in Asia. Said Varel Freeman, Director of IFC's Asia Department: "Through this project, IFC hopes to introduce much-needed venture capital management expertise to China. In addition, venture capital funds provide an effective means for IFC to support small and medium-sized enterprises." The purpose of the fund is to make profitable investments in joint venture projects in China. The investments will focus on telecommunication products and services, building materials, health care and biotechnology, software, and infrastructure. IFC is the private sector arm of the World Bank Group and the largest source of multilateral financing for private sector projects in developing countries. IBRD IDA IFC MIGA ICSID