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EBRD sets up West Russia Regional Venture Fund
As part of its Regional Venture Fund (RVF) programme in Russia, the European Bank for Reconstruction and Development (EBRD) has established a 10-year US$ 30 million (ECU 22.7 million) equity fund to cover the north-west region of the country. The West Russia RVF is part of a programme supported by the G-7 countries to establish 11 such funds in Russia.
At the signing ceremony in Rome yesterday, Sven Hegstad, Director of the EBRD’s early stage equity team, said: “This is the ninth fund launched in Russia to help privatised and new enterprises to modernise and restructure through equity investments, improved corporate governance and technical cooperation funding.”
The Fund will provide a unique source of equity financing, and give strong support to the privatisation process in the regions of Novgorod, Tver, Pskov and Vologda.
A consortium of companies will manage the fund, bringing together skills in venture capital with experience in Russia and a broad international network based in industry, trade and finance. The West Russia RVF is sponsored by the Italian Government, which will make available US$ 20 million for technical assistance for pre-investment and post-investment advisory work with financed companies. The Fund will be managed by Sofipa Spa (a merchant bank subsidiary of Mediocredito Centrale Group) and Iritech Spa (a venture capital subsidiary of Finmeccanica), two leading Italian venture capital firms. Sofipa and Iritech will have a team of professionals based permanently in Russia. The senior fund managers will be Mr G. Ciocetta and Mr G. Tammi.
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