Russia’s Elbrus Capital beats target for second fund


moscow 7_sqRussian private equity firm Elbrus Capital has held a final close for its second fund, on its $550m hard cap.

Elbrus Capital Fund II was oversubscribed and exceeded its initial $500m target, the firm said. The fund has also received a provisional commitment of $150m from the Overseas Private Investment Corporation, (OPIC) bringing its capital available for investments to $700m.

Elbrus saidthat a number of the fund’s LPs made their first commitments to Russian private equity. LPs that backed the fund include institutional investors from Europe, the US, Middle East and Asia. The fund previously received a cornerstone commitment of up to $50m from the European Bank for Reconstruction and Development and a $20m investment from IFC. German development finance fund DEG and Finland’s Varma Mutual Pension Insurance were also named as LPs.

Alexander Savin, co-managing partner of Elbrus Capital, said, “We are pleased that such a high quality group of international investors has demonstrated its confidence by committing to the Fund. The deployment of the Fund is well under way with over $200m already invested in six platforms. The Fund has been able to consistently invest in the market leaders in the mid-market growing at 20 per cent or more”

The vehicle will make “control and significant influence” investments in companies operating in fragmented markets with “clear consolidation potential”, Elbrus said. Most recently the firm invested in Intercomp, currently the largest financial and HR business process outsourcing provider in Russia and the CIS.

Elbrus partner Rob Thielen said, “This is a great achievement in a very difficult fundraising environment for Russia and CIS-focused funds. It positions the fund strongly to deliver superior returns to its investors.”

Elbrus Capital was launched in 2007 within Renaissance Group under the Renaissance Private Equity brand. Elbrus Capital’s first fund, the $324m Elbrus Capital Fund I, targets changing consumer patterns, business and consumer infrastructure , optimising use of natural resources, healthcare and education .

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