Troika, Temasek launch Russian PE fund

The Russian investment bank and Asian investment company have teamed up to establish the Russia New Growth Fund with commitments of $150m.

Troika Dialog Asset Management (TDAM), a Russian investment bank, and Temasek Holdings, the Singapore-headquartered investment group, have signed a joint venture to co-sponsor a new mid-cap private equity fund targeting opportunities in Russia and the Commonwealth of Independent States (CIS).

Manish Kejriwal, managing director investments, Temasek Holdings

The Russia New Growth Fund has received $150 million (€128 million) in commitments from its co-sponsors. In a statement, TDAM said additional investors would be sought ahead of a final closing next year. The final target for the fund has not been disclosed.

The fund will target blocking minority and majority stakes in sectors such as retail, consumer goods, logistics, business services, specialised manufacturing, telecoms and certain media. Individual investments will be in the range $5 million to $45 million.

The fund’s Moscow-based investment team is headed by Richard Waryn, a former co-founder of Finartis Private Equity and founder of Centurion Capital – both private equity firms that focused on investments in Central and Eastern Europe.

Founded in 1996, TDAM is a member of the Troika Dialog Group of Companies and runs four open-end mutual funds, two interval funds and one closed-end real estate fund. The firm has $1.5 billion under management.

Temasek Holdings, an investment arm of the Singapore government, was established in 1974 and has a $63 billion portfolio spanning Singapore, Asia and the OECD countries.

Manish Kejriwal, managing director of investments at Temasek, said in a statement: “We are excited about investment opportunities in Russia. The Russia New Growth Fund will capitalise on growing opportunities in the private equity industry in Russia and the CIS, fuelled by sustained growth in the region’s economy.”