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EBRD invests in Russian financial company
Sector Capital, a financial company integrating Russian stock portfolio management, financial advisory services and a direct investment fund, has been established following the signing of a US$ 10 million equity investment by the European Bank for Reconstruction and Development (EBRD) giving the Bank an initial 25 per cent of the company.
David Hexter, Deputy Vice President of the EBRD, said “Sector Capital’s management already has extensive experience in Russia, with an impressive portfolio management operation. The company will be providing critical financial services to private sector companies in the EBRD’s priority sectors, and will also have a significant impact on reducing industrial infrastructure bottlenecks.”
Sector Capital will combine under one roof the Sector Capital Fund, the Sector Capital Development Company and Gambit Securities, a leading Russian asset management and securities firm. The Sector Capital Fund will provide direct investment capital, particularly in the transportation and logistical (warehousing, distribution companies, ports, etc.) sectors focusing on the Russian Far East. The Sector Capital Development Company will manage the Sector Capital Fund and Gambit Securities and provide a range of investment banking services (including corporate finance, restructuring, syndication and privatisation advice), as well as building upon an existing private sector stock portfolio management operation with US$ 60 million under management.
Sector Capital will have a combined initial capital of approximately US$ 40 million. The International Finance Corporation has invested US$ 5 million along with a number of leading institutional investors in private emerging markets. Major shareholders include Sovcap, Inc., a Russian advisory firm, and the European Privatisation and Investment Company (EPIC), an Austrian-based financial advisory company, which will share responsibility for establishing Sector Capital’s operations.
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