The European Bank for Reconstruction and Development, a development finance institution whose remit is to enhance poorer economies in Europe, is considering committing up to usd10m to a new Mongolian private equity fund.

The Mongolia Opportunities Fund I will target usd50m in total and the EBRD does not intend to commit any more than 20 per cent of its total capital, it said.

“The fund will be the first private equity fund in Mongolia to focus on equity and quasi-equity investments in fast growing small- and medium-sized enterprises,” the EBRD said in a statement.

The novel vehicle will invest in companies primarily operating in sectors covering agribusiness, infrastructure and mining services and supply chains, and will consider growth investments in the range of usd2.5m to usd7.5m per company.

Mongolia has attracted recent private equity attention due to its rich mineral wealth.

Origo Partners, an Asia-focused fund manager listed on London’s AIM exchange, recently set up an office in the country to tap the gold, iron ore, molybdenum, uranium, oil, copper and coal reserves there.