The European Bank for Reconstruction and Development (EBRD) is to act as a cornerstone investor in Russia and CIS-focused Elbrus Capital Fund II. The Bank has agreed to invest up to $50m, but its investment will not exceed 25 per cent of aggregate commitments to the fund.
The target size for the new fund is $500m. Its plan is to make equity investments in the regions of Russia, as well as other CIS countries, focusing on small and medium-sized companies – a sector which traditionally has very little access to long-term financing.
In 2009 Dmitri Krukov, former managing partner of Renaissance Private Equity, Alexander Savin, former CEO of A1 Group, and Robert Thielen, founder and managing partner of Waterland Private Equity, joined forces and bought out the fund management company from Renaissance Group.
Elbrus Capital’s first fund, the $324m Elbrus Capital Fund I, targets changing consumer patterns, business and consumer infrastructure needs, optimising use of natural resources, healthcare and education needs.
The fund’s existing portfolio consists of investments in a Russian TV and radio company Media-One, an automotive retailer in Siberia, regional broadband internet and cable TV operator Strela Telecom and laundry company Blesk InCare.
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