Quadriga Capital Russia, a Russian growth capital firm backed by 3i, has sold off a majority stake in JSC Morion, a maker of high-precision quartz devices.
Quadriga has sold a 52.17 percent stake in St Petersburg-based Morion to Gazprombank, Russia’s third largest bank with more than 300 outlets in 48 Russian regions.
Morion, which provides devices that are used in space, aviation and terrestrial communications systems, had revenues of $14.4 million (€11.0 million) last year.
The size of the original deal was unusual for Quadriga, which tends to take significant minority stakes in the companies it backs.
Quadriga Capital Russia, a sister company of the Frankfurt-based Quadriga Capital, has been operating in the region since 1995. Last year it raised $136 million for its second fund, which will target medium-sized businesses in Russia. The European Bank for Reconstruction and Development and the International Finance Corporation were the two biggest investors in the fund, while 3i was the biggest private investor thanks to a $20 million commitment, managed through its Helsinki office.
3i is one of a number of Western firms looking to increase their exposure to Russia, whose rapid economic growth and huge population of 140 million people seems to offer a massive potential market for private equity-backed firms.