Project description
and objectives:
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Tamir Fishman Russia Venture Capital Fund (the “Fund”) is a RUB 2 billion (EUR 57 million) venture capital fund, which will be set up by Finance Trust (the Fund Manager) in order to invest in Russian companies developing innovative technologies. The Fund Manager is 51% owned by Tamir Fishman Group (TFV).
The Fund Manager has won a tender organised by the Ministry of Economic Development and Trade to draw 49% of the Fund’s financing needs from government funding provided by the Russian Venture Company (“RVC”).
EBRD will commit to invest up to RUB 375 million (EUR 10.6 million) in the equity of the Fund alongside the Fund Manager, other investors and the RVC. The Bank’s share in the Fund’s committed capital is expected to be 18.75%.
The Fund Manager expects to create the investment portfolio comprising a broad group of 10 or more companies, in a range of stages of business development from start up to expansion capital. These companies will market products and services incorporating innovative solutions across a broad spectrum of technologies such as living systems (biotechnologies, medical technologies and medical equipment), nanosystems and materials, communication and information technologies.
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Transition impact:
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The transition impact effects of an investment in the Fund will include the following:
- Support the Russian government programme of establishing a venture capital industry. The Russian administration has allocated a significant amount of capital to seed the process. EBRD’s participation in this process if successful can have significant economic and financial effects.
- Today, the Russian venture capital industry hardly exists and allocations to it are generally unavailable from mainstream institutional investors. The demonstration effects of a financially successful investment by the Bank would be significant as it would flag the opportunity for other investors.
- A key to formation of a functioning marketplace is to create skilled investment teams and develop their track record. The proposal will support the “institution building” of one new entrant to the market.
- It is perceived that technology companies in Russia do not have access to finance needed to commercialise their ideas. This Fund will help address this “equity gap.”
- Investee companies will also receive assistance from an experienced team lead by Tamir Fishman Group, which would actively help with strategic issues of business development, marketing and finance.
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The client:
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Tamir Fishman Russia Venture Capital Fund (the “Fund”) is a RUB 2 billion (EUR 57 million) venture capital fund which will be set up by Finance Trust (the Fund Manager) in order to invest in Russian companies developing innovative technologies. The Fund Manager is 51% owned by Tamir Fishman Group (TFV).
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EBRD finance:
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Up to RUB 375 million.
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Total project cost:
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RUB 2 billion.
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Environmental impact:
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This operation will require the standard covenants for FI operations, and namely:
- The Fund will apply EBRD’s Environmental Procedures for Private Equity Funds.
- The Fund will comply with EBRD’s Environmental Exclusion and Referral list.
- Compliance of investee companies with national standards for environment, health and safety, relevant requirements for public disclosure and consultation.
- Compliance with relevant national employment laws and standards and Conventions of the International Labour Organisation related to the employment of children and young people, discrimination at work, and forced labour.
- Provision of an Annual Environmental Report to the Bank.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Daniel Gimpel, Managing General Partner
Tamir Fishman Russia Fund
Platinum Tower, 21 Ha'arbaa St.
Tel Aviv 64739, Israel
Tel: +972-3-684-9222; fax: +972-3-685-3337
Cell: +972-544-349-878
E-mail: Danielg@tamfish.com
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EBRD contact:
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Ekaterina Grigorieva, Operation Leader: grigorie@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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