CapMan Russia Fund L.P.

Location:

Russia

Project number:

35018

Business sector:

Equity funds

Notice type:

Private

Environmental category:

FI

Target board date:

02 Apr 2007

Status:

Repaying

PSD disclosed:

19 Jan 2006

Project Description

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.

Transition Impact

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.

The Client

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:

  • DnB NOR Bank ASA (Norway)
  • Sitra (The Finnish National Investment Fund for Research and Development)
  • Sitra Management Ltd

EBRD Finance

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.

Project Cost

Up to EUR 50 million.

Environmental Impact

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.

Technical Cooperation

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.

Company Contact

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

 

Business opportunities

For business opportunities or procurement, contact the client company.

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