IFC said it expected its investment to attract other LPs to the private equity fund, which is targeting $500m.
Aftab Ahmed, IFC’s director for financial markets in Europe, said, “Small and medium companies are the focus of our strategy in Russia, and globally.
“Our experience shows that medium-sized companies are especially effective in creating jobs and introducing new services to markets.”
IFC has invested more than $10bn in Russia since it became a member of the group in 1993, including $1.2bn in fiscal 2012.
The European Bank for Reconstruction and Development (EBRD) acted as a cornerstone investor in Elbrus Capital Fund II by agreeing to invest up to $50m.
ECII plan is to make equity investments in Russia and other CIS countries, focusing on small and medium-sized companies – a sector which traditionally has very little access to long-term financing.
Elbrus Capital’s $324m first fund targets changing consumer patterns, business and consumer infrastructure needs, optimising use of natural resources, healthcare and education needs.
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