EBRD in first investment in financial infrastructure fund

By Richard Wallis

The EBRD has for the first time invested in a private equity fund tasked with making investments in financial infrastructure, a broad sector covering everything from stock exchanges to financial IT services, brokerages and re-insurance providers.

The Bank, acting as a cornerstone investor, is committing USD 30 million to Da Vinci Private Equity Fund II which will target Russia and the rest of the Commonwealth of Independent States (CIS). The fund’s aim is to raise USD 150-200 million.

"The Bank is working with the fund manager who has the necessary experience to strengthen and support the development in the region of a sophisticated financial infrastructure," said EBRD’s Director for Equity Funds Anne Fossemalle.

Da Vinci Private Equity Fund II aims to invest in small and medium-sized businesses in domestic capital market infrastructure, financial and related IT services, as well as companies operating in the banking and insurance sectors, all of which provide essential support for national financial systems.

Oleg Jelezko, Managing Partner of Da Vinci Capital, added: “We see fundamental growth drivers in these sectors and are focused on building businesses that can compete internationally and achieve exits through public markets. The new fund’s initial investments already demonstrate the necessary growth.”