Overview of the AIG African Infrastructure Fund

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Overview of theAIG African Infrastructure Fund
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Emerging Markets Partnership

• Founded in 1992 by Moeen Qureshi and Don Roth
• Worldwide staff of over 70 professionals
• Offices in Washington DC, Abidjan, Brunei,
  London,
• Hong Kong, Singapore, Johannesburg and
  Bahrain
• Nearly US6.0 billion under management
• Structured over 90 transactions in 30 countries

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AIG African Infrastructure Fund

• Core investors
• American International Group (AIG)
• International Finance Corporation (IFC)
• African Development Bank (ADB)
• El Paso Energy
• Development Bank of Southern Africa (DBSA)
• Proparco
• European Investment Bank (EIB)

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AIG African Infrastructure Fund

• Largest private equity fund focused on Africa
• Commitment of over 400 million from 16 investors
• Closed in April 2000
• Five-year commitment period
• Ten-year fund life
• Target 20-25 annual return to integrate net
  of
• Management fees

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AIG African Infrastructure Fund

• Chairman of Board of Advisors H.E. Nelson
  Mandela
• Chairman of Investment Committee Donald Roth
• Staff Edward V. K. Jaycox - Chief Executive
  Officer
• Thomas R. Gibian - Chief Operating
  Officer
• 14 Professionals - (8 from Africa)
• Three offices Washington DC, USA
• Abidjan, Côte
  dIvoire
• Johannesburg, Republic
  of South Africa

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AIG African Infrastructure Fund

• Modus Operandi I
• Infrastructure wide definition all but real
  
• estate and financial institutions
• Very selective - Countries
• - Partners
• - Transactions
• Invest in Companies not Projects
• Strategic Partners growing companies, with
  aggressive
• business plans in Africa, especially
  multi-country companies
• Private Sector companies - no Government
  controlled
• 
  companies
• - no start-ups

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AIG African Infrastructure Fund

• Modus Operandi II
• Equity Quasi Equity
• Minority Share with strong Minority Rights and
• Board Seats
• Prudential Limits - 10 of Fund (40 million)
• in any
  single firm
• - 20 of Fund
  (80 million)
• in any
  single country
• - 10 million
  minimum investment
• Due diligence by Fund Staff often supplemented
• by consultants

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AIG African Infrastructure Fund

• Modus Operandi III
• Returns from Capital Appreciation
• Hold 3-5 years
• Exit - IPO
• - Trade Sale
• - Put

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AIG African Infrastructure Fund

• Funds Committed to Date 254.0 million
• Average Investment Size 18.0 million
• Investments in near pipeline 80.0 - 100.0
  million
• Fully Committed by December 2004
• On track to deliver 20-25 per annum net return
  to Investors by end of Fund Life

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Sectoral Distribution Diversified
AIG African Infrastructure Fund
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Geographic Distribution of Portfolio and Pipeline
Tunisia 2
Morocco 16
Egypt 1
Burkina 1
Algeria 12
Uganda 4
Senegal 1
Chad 3
Sudan 1
Nigeria 7
5 or more
Cote dIvoire 6
Less than 5
Ghana 1
Cameroon 5
DRC 3

• Other Countries include
• Malawi
• Mali
• Niger
• Sierra Leone
• Namibia
• Mozambique
• Rwanda

Eq Guinea 3
Tanzania 9
Kenya 1
Gabon 9
Angola
Congo B 3
Zambia 5
Unallocated 5
South Africa 2
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EMP-AFRICA FUND II

• Follow-on Fund
• 400-500 million Fund size
• Aim first closing by 1st Quarter 2005
• Widen Sectoral scope Beyond Infrastructure
• Increase prudential limits
• Off to a fast start

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EMP AFRICA FUNDS

• Contacts
• Edward Jaycox jaycoxk_at_empw.com
• 1-202 530 3136
• Thomas Gibian
  gibiant_at_empw.com
• 1-202 530 3104
• Emerging Markets Partnership www.empwdc.com
• Fax [phone]
• 2001 Pennsylvania Avenue NW, Suite 1100
• Washington, DC, 20006
• USA