Project description
and objectives:
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The proposed project envisages commitment of up to one third of the total
aggregate capital commitments of the Norum Russia Fund III L.P. but not to
exceed EUR 50 million. Norum Russia Fund III L.P. is the successor fund to
North West and West Russia Regional Venture Fund (NW&W RVF), managed by Norum.
The fund will seek to realise superior investment returns by investing in
private equity situations in Russia. It intends to acquire interest in
unquoted, predominantly medium-sized industrial or service-oriented companies
based or operating primarily in Russia, with a view to realising capital gains
on exit, and in some cases, generating dividends.
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Transition impact:
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Norum Russia Fund III L.P. is well-positioned to meet the transition criteria
of EBRD by having an experienced and dedicated private equity team in Russia.
By investing in the fund, the EBRD will:
1. support a management group evolved from the RVF programme with a good track
record
2. support a private equity fund that will provide much needed capital funding
in Russia, and
3. support the development of local private enterprises engaged in different
economic sectors.
The active, hands-on involvement of fund managers in their portfolio companies
is well suited to investments in this high risk environment.
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The client:
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In 1995 following a competitive selection process, Norum Ltd became the fund
manager to the NW&W RVF. Norum Ltd. Is a company incorporated in Finland and
jointly owned by Sitra, Sitra Management Ltd, DnB NOR Bank ASA, CES Nordic and
FINNFUND. Total capital committed to the NW&W RVF was USD 87.5 million.
Norum Russia General Partner Limited, a company incorporated in Cayman
Islands, is responsible for managing the Norum Russia Fund III L.P. The
managers are the three Norum key individuals, namely Knut Borch, Hans
Christian Dall Nygaard and Alberto Morandi, who have also been managing the
NW&W RVF.
The Sponsors are the principal sponsors behind the RVF’s management company:
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DnB NOR Bank ASA (Norway)
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Sitra (The Finnish National Investment Fund for Research and Development)
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Sitra Management Ltd
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EBRD finance:
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Up to one third of total aggregate capital commitments of but not to exceed
EUR 50 million. The target size of the Fund is EUR 150 million.
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Total project cost:
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Up to EUR 50 million.
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Environmental impact:
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The fund will continue to comply with the EBRD’s environmental requirements
for Private Equity Funds which include, inter alia, complying with the Bank's
environmental exclusion and referral list, implementing environmental due
diligence procedures, requiring that investee companies comply at a minimum
with national health, safety, environment and labour standards and annual
reporting on environmental, health and safety matters.
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Technical
cooperation:
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No new Technical Co-operation funding will be provided. Previous Technical
Co-operation funding provided by the Norwegian, Finnish and Swedish
governments to the North West and West Russian Regional Venture Fund was used
to support both original and the follow-on fund.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Hans Christian Dall Nygård – CEO, Senior Partner
NORUM
Kaluzhskij
Per.3
193015 St Petersburg, Russia
Tel: +7 812 320 0404
Fax: +7 812 320 0405
Email: hcdn@norum.spb.ru
Knut Borch – Executive Chairman for the Management
Company and
Investment Committee
Senior Partner
NORUM
Fredrik
Langesgt. 20
P.O. Box 777
9258 Tromsø, Norway
Tel: +47 77 67 92 50
Email: borch.norum@eunet.no
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EBRD contact:
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Michael Bastholt, Operation Leader: bastholm@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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