The board of the European Bank for Reconstruction and Development has confirmed the bank’s $35 million participation in the Russia New Growth Fund, which is managed by Troika Capital Partners and aims to help some of the most dynamic companies in Russia and the former Soviet Union fund promising projects.

Troika currently manages assets of $370 million and plans to close the Russia New Growth Fund at around $300 million in the first quarter of next year. The fund plans to invest about $150 million per annum and the investments in each project are projected to average between $20 million and $30 million.

Temasek Holdings, the investment arm of the Singapore government, played a key role as an anchor investor at the initial stage of the fund’s formation, a commitment that helped to attract the EBRD as a second major investor in the Russia New Growth Fund.

“The approval of the EBRD’s board of directors is an indication of great confidence in the Russia New Growth Fund, since it is one of the most experienced investors in the region,” says Sergey Skvortsov, president of Troika Capital Partners and managing director of the Troika Dialog group.

“The $35 million investment is the maximum size commitment that the EBRD will make when participating for the first time. For Troika, this is a very important recognition by the leading investor in the region and we plan to build our private equity business further in the years to come.”

Giedrius Pukas, chief investment officer of Troika Capital Partners, added: “The presence of such a significant investor as the EBRD will not only help our position in the market but also be instrumental in the implementation of promising new projects. In the near future, we will be completing a number of major deals on behalf of the fund.”

Set up in 2005, the Russia New Growth Fund aims to purchase blocking and controlling equity stakes in companies primarily in sectors of the economy affected by increasing consumer demand, such as retail, financial services and other consumer services.

As asset manager for the fund, Troika Capital Partners purchases large or controlling equity holdings, making it possible for Troika to appoint members of the board and to take an active role in setting company strategy.

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