Russian Direct Investment Fund Buys Stake in Stock Exchange
Spokesman says price was in the ballpark of $50M
January 30, 2012
Russia's $10 billion private equity fund is finally starting to make some moves, announcing its first investment since it was launched.
The Russian Direct Investment Fund (RDIF), which was set up in June to attract foreign direct investment into the country, has partnered with the European Bank for Reconstruction and Development (EBRD) to buy a stake in the country's MICEX-RTS stock market with the goal of developing Moscow's capital markets.
The EBRD agreed to purchase a 6.29% block while the Russian fund picks up a 1.25% stake.
Financial details of the transaction were not revealed. But RDIF's investments are expected to range between $50 million and $500 million, according to spokesman Quinn Martin in an interview. Martin said, for this transaction, the fund invested on the “very bottom of that range.”
RDIF has more deals slated for the year with the next one coming as early as February, he added.
Several United States private equity sponsors are on the RDIF advisory board, including Apollo Global Management chairman and chief executive Leon Black, TPG Capital managing director David Bonderman, Apax Partners chief executive Martin Halusa, Warburg Pincus' head of European operations Joseph Schull and Blackstone Group chairman and chief executive Stephen Schwarzman.
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