Cyprus Capital plots December first close for debut fund – exclusive

The firm, which focuses on growth, venture and expansion capital in the eastern Mediterranean, is seeking at least €100m.

Cyprus Capital Partners is targeting a first close on €30 million for its debut fund in December, Private Equity International has learned.

The Nicosia-based private equity firm launched CyCap Opportunity Fund in September with a €100 million target and a €250 million hard-cap, founder Thomas Kingston told PEI. Cyprus Capital has already received a letter of intent from a European private pension fund that will invest following a successful initial close.

The firm is also in discussions with high-net-worth investors and family offices from the US, Russia and Cyprus. The Cyprus government operates a citizenship-by-investment programme that grants full citizenship to those that invest more than €2 million in alternative investment funds or real estate.

“It’s a little bit difficult because Cyprus is still coming out of its banking crisis,” said Melinda Rishkofski, head of business development at Cyprus Capital.

“While we see it as a very stable market now, it’s still what people remember when you talk to investors who don’t have interest already in Cyprus. A group of Cypriots, based in the US, who were somewhat doubtful before we introduced our pipeline, were really surprised that those kind of companies existed.”

CyCap I will make venture, growth and expansion investments across the eastern Mediterranean including Greece, Lebanon and Israel. It will acquire minority stakes in sectors such as maritime services, shipping and manufacturing.

The fund will charge a 2 percent management fee on committed capital and 20 percent carried interest after a 6 percent hurdle, according to documents seen by PEI. Cyprus Capital has already identified ten potential targets and aims to make its first investment within three months of an initial close, Kingston said.

“We really want to see commerce driving stability across the whole region,” he added.

Kingston founded Cyprus Capital Partners in 2013, following spells as an advisor and executive to family offices, institutional investors and state-owned investment companies. Rishkofski, who spent 12 years as general counsel for Moscow-headquartered Baring Vostok, joined in May from global law firm Baker Botts.