OPIC Board Approves $40 Million for Investment Fund to Support SMEs in Russia's Outer Provinces
December 18, 2012
(OPIC)
WASHINGTON, D.C. – The Board of Directors of the Overseas Private Investment
Corporation (OPIC), the U.S. Government’s development finance institution,
approved up to $40 million in financing for a private equity investment fund
that will support small and medium-sized enterprises (SMEs) in Russia’s outer
provinces, where private equity has been largely unavailable.
Fast-growing SMEs with strong market positions will stimulate sustainable
development predominantly in regions outside Moscow and St. Petersburg, where
most economic power is concentrated. Those businesses will benefit from the
support of the fund’s capital, state-of-the-art management techniques, and
adherence to rigorous environmental, social and governance standards.
OPIC selected CapMan Russia II GP Limited as fund manager. Negotiations on more
detailed terms and conditions of the financing will be conducted with the fund
manager.
The CapMan Russia II Fund will invest in sectors such as consumer goods and
services, health care, manufacturing and agriculture, IT and telecoms, as well
as construction – industries expected to show strong growth in the future,
supported by increasing consumer consumption and rising standards of living in
Russia. The fund will provide hands-on support, transferring best-in class
management practices and technology, helping targeted SMEs expand into new,
complementary areas. The fund has a target capitalization of €175 million, or
approximately $227 million.
“Small businesses in Russian regions outside of Moscow and St. Petersburg have
terrific untapped potential, but have not had access to the capital they need to
grow. This fund will help to fill that gap in high-growth sectors that stand to
have the most significant development impact,” said OPIC President and CEO
Elizabeth Littlefield.
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