3i Group invests in Russian growth fund
3i Group is investing $20m in Quadriga Capital Russia Private Equity Fund II LP, the second in a series of limited partnerships managed by Quadriga Capital Russia. The investment will be managed by 3i Finland from its Helsinki office.
This is a growth capital fund that focuses on Russian companies. 3i will be the largest private investor in the fund, with The European Bank for Reconstruction and Development (ERBD) and the International Finance Corporation (IFC) as the main investors in this fund. The total target size of the fund is $140m.
Investments will be focused on private companies with strong management, positive track record and high growth potential. The Fund will take significant minority stakes in the investee companies. Examples of investee companies are a plastic container producer and a computer game manufacturer.
Quadriga Capital Russia, which is headquartered in St.Petersburg has focused on private equity in Russia since 1995 and is one of the longest established private equity companies in Russia. Ere Kariola, 3i's Managing Director in Finland will take a seat on both the advisory board and investment committee of the fund.
Commenting on the fund, Ere Kariola, said: "Russia is an interesting market for many of our portfolio companies within 3i Group at the moment and a relationship with Quadriga enables our portfolio to gain market access from local sources. We will also have a good opportunity to co-invest in fast growing Russian companies."
Chris Rowlands, 3i Head of Group Markets, added: "This investment enables 3i to gain a footprint in one of the fastest growing markets in Europe, with 7% GDP and a population of 140m people. It affords us a window on the Russian private equity market and enables us to expand our network even further for the benefit of all our portfolio companies.
Notes to editors
About 3i Group plc
3i is a FTSE100 company and world leader in private equity and venture capital. We focus on Buyouts, Growth Capital and Venture Capital and invest across Europe, in the United States and in Asia Pacific.
Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. It underpins the value that we deliver to our portfolio and to our shareholders.