Georgia PM backs $6bn co-invest fund

The Georgian Co-investment Fund is designed to encourage more foreign investors to put money into the country

Georgia's prime minister Bidzina Ivanishvili has announced the creation of a $6 billion state co-investment fund – which according to local reports, includes $1 billion of his own money.

According to an official statement, the fund's other investors include Dhabi Group, State Oil Fund of the Republic of Azerbaijan and the family of Badri Patarkatsishvili, the late Georgian oligarch. 

The fund is designed to boost the Georgian economy by providing potential investors in Georgia with a reliable investment partner. The statement added that the management team was in the process of closing the $6 billion pool and plans to make its first investment before the end of 2013. 

“We believe that the Georgian Co-investment Fund will further strengthen investor confidence in Georgia and provide a significant boost to the country’s economic growth,” CEO George Bachiashvili said in the statement. 

According to Bachiashvili, up to ten investment projects worth a total of $500 million are already under consideration. At least 80 percent of the total assets will be invested in Georgia – including up to $3 billion in energy projects, up to $1 billion in tourism and hospitality, and up to $1.5 billion in manufacturing. 

Forbes values prime minister Ivanishvili's fortune at $5.3 billion. While the country has long had a reputation for blurring the boundaries between government and business, reports suggest that Ivanishvili plans to leave politics after Georgia's presidential election at the end of October and will only invest after stepping down.