Mon, Aug 29, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Private Equity Strategies

Update: The Russian Direct Investment Fund Launches New Fund

Saturday, June 22, 2013

Bailey McCann, Private Equity Strategies

In February we spoke with Sean Glodek, Director, Russian Direct Investment Fund (RDIF) on the success of the MICEX IPO. Which created Moscow’s first publically traded exchange. Now is out with more news and a new fund launch.

RDIF and Mubadala Development Company (Mubadala), the Abu Dhabibased investment and development company are joining on a $2bn co-investment fund to pursue opportunities in Russia. The agreement was announced at the St Petersburg International Economic Forum 2013 by CEO of RDIF Kirill Dmitriev and CEO of Mubadala Khaldoon Al Mubarak.

The fund will predominantly focus on long-term investment opportunities across a range of industry sectors, acting as a catalyst for direct investment in Russia. The announcement is aligned with Mubadala’s plans to establish a strong presence in key international markets.

Mubadala and RDIF are each committing $1 billion. The majority of Mubadala's commitment will be deployed in opportunities that will be evaluated on a deal-by-deal basis while some of the capital will be invested as an automatic co-investment into RDIF deals.

Some early indications of what the new fund may look at were also offered at the event. Dmitriev who is also Chairman of the B20 Taskforce on “Investment and Infrastructure” finalized recommendations on infrastructure investments in the country and had this to say on those opportunities - "the key objective of our recommendations is to create the optimal conditions for global economic growth by promoting investment, especially in infrastructure. Approximately $60 trillion of global investments into infrastructure will be required in the run up to 2030. This represents more than the value of all the existing infrastructure today. The introduction of international best practices in infrastructure development would save up to $1 trillion per year, enabling world GDP to grow by at least 3% if these savings were re-invested."

Those recommendations are focused on improving the quality and return of infrastructure investments as well as making it easier to invest in infrastructure. The B20 will be included in broader discussions of global infrastructure investment at the G20 meetings.

RFID made two additional announcements today of memoranda of understanding with General Electric (GE) and OJSC Russian Grids to expand electrical and power grid capabilities within the country. RFID hopes to work with OJSC Russian Grids to attract investment into the Russian power industry and will work with GE on providing cogeneration power to the commercial sectors of Russia’s economy.

 
This article was published in Opalesque's Private Equity Strategies our monthly research update on the global private equity landscape including all sectors and market caps.
Private Equity Strategies
Private Equity Strategies
Private Equity Strategies
Private Equity Strategies


Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new