Elbrus Capital

Location:

Russia

Project number:

41388

Business sector:

Equity funds

Notice type:

Private

Environmental category:

FI

Target board date:

13 Jun 2012

Status:

Disbursing

PSD disclosed:

18 Apr 2012

Project Description

The EBRD is considering an equity investment of up to USD 50 million, but not exceeding 25 per cent of total aggregate capital commitments, to Elbrus Capital Fund II (“Elbrus II” or “Fund”), a private equity investment fund registered in Cayman Islands as an exempted limited partnership.

Elbrus Capital was launched in 2007. Elbrus II will follow a buy-and-build strategy – in a typical investment, the Fund will make a platform acquisition followed by a number of add-ons to create value through accelerated growth, improved profitability, improved corporate governance and valuation multiple expansion. The majority of the Fund’s investments will be across Russia but it will also have the flexibility to invest in other CIS countries.

Transition Impact

The transition impact of the proposed project would come from the following areas:

(i) market expansion, including development of private equity financing and transfer of private equity skills across Russia and in other CIS countries
(ii) demonstration effect for buy-and-build strategy and consolidation of companies in fragmented sectors
(iii) transfer of Western private equity knowledge and skills to the Russian private equity sector
(iv) promotion and enhancement of high standards of corporate governance and integrity in the Fund and investee companies

The Client

The Fund will be managed by Elbrus Capital Investment Manager Limited, a Cayman Islands exempted company.

EBRD Finance

The Bank will invest the lesser of USD 50 million or 25% of aggregate commitments.

Project Cost

The target size of the Fund is USD 500 million.

Environmental Impact

The project has been assigned a screening category of FI, as the EBRD financing is via a financial intermediary.

The Fund will be required to comply with EBRD Performance Requirements 2 (Labour and Working Conditions) and 9 (Financial Intermediaries) and implement the EBRD's Environmental and Social Procedures for Active Equity Investments. The Fund should ensure investee companies comply with national environmental, OHS, social and labour standards.

The Fund will be required submit annual environmental and social reports to the Bank.

Technical Cooperation

None.

Company Contact

Alexander Savin
Managing Partner
ASavin@elbcp.com
Dmitri Krukov
Managing Partner
E-mail: DKrukov@elbcp.com

52nd Floor
Moscow City
Naberezhnaya Tower, Block C
10 Presnenskaya Nab.
Moscow, 123317, Russia

Tel: +7 (495) 663-7400
Fax: +7 (495) 663-7407

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.