Alpha Associates is set to close its debut secondaries fund for Russian and the countries of the former Soviet Union in early May, according to managing partner Petra Salesny.
The fund has a target of between $100 million and $150 million and has already collected about $50 million. The fund’s anchor investor is the European Bank for Reconstruction and Development, which is providing a $50 million commitment.
Other limited partners in the fund include foundations and investment companies in the US and Europe.
Alpha formed the separate secondaries fund for Russia and the Commonwealth of Independent States, as the former Soviet Union countries are known, “in order to capture post-crisis opportunities” in the region, according to Salesny.
Secondaries opportunities in Russia and the CIS generally come from limited partners from more developed economies, Salesny said. Among the CIS countries, private equity opportunities exist in Russia and other CIS countries like Ukraine, Kazakhstan and Belarus.
Alpha targets mature fund interests that are generally 50 percent funded, she said, and buys individual fund stakes rather than large portfolios.
“This is a very niche market and it’s very inefficient,” Salesny said.