Credit Suisse, Sberbank shelve plans for Russia private equity fund


Swiss banking giant Credit Suisse and Russian state-backed lender Sberbank are understood to have shelved plans to launch a $1bn private equity fund in Russia due to a lack of interest from investors.

Bloomberg reported the news on Friday, citing unnamed people familiar with the matter.

The pair had planned to commit about $100m each to the proposed vehicle and raise the rest from third party investors, Sberbank CEO Herman Gref told Bloomberg in April 2011.

“This is an important way of attracting direct investment into Russia,” Gref told Bloomberg in April.

In October Moscow-based Baring Vostok closed its fifth fund on $1.5bn, a move that many Russian investors hope will boost confidence in a region that has historically deterred investors.

Last year the Kremlin launched the Russian Direct Investment Fund, a $10bn vehicle launched to entice overseas investors to commit to private business opportunities in the country.

Copyright © 2012 AltAssets