By Marcus Williams
The European Bank of Reconstruction and Development will commit up to $50 million to a new private equity fund-of-funds which will mainly focus on investing in existing equity funds covering Russia, the CIS and Turkey.
The fund, Alpha Russia & CIS Secondary L.P., aims to raise up to $300 million. It will be managed by Alpha Associates Group, an independent private equity manager based in Switzerland.
Its managers will mainly target the secondary market in private equity funds. However its strategy will also include primary commitments to new private equity funds, as well as direct co-investments in selected companies alongside reputable and experienced lead-investors.
By replacing investors affected by the recent financial turmoil, the fund will play a crucial role in supporting the real economy in these countries through the provision of much needed equity capital to the private sector, thus dove-tailing with the EBRD’s crisis response strategy for the region.
Petr Rojicek of Alpha Associates said in a statement: " The opportunity today resembles that after the 1998 crisis when attractive returns were generated by Russian private equity, the difference being that this time the Russian economy is incomparably stronger,” said Petr Rojicek of Alpha Associates.
Loading ...
