Russia: New fund seeks foreign co-investors

Launched in June, Russian Direct Investment Fund (RDIF) is an important part of the drive to modernise and diversify the Russian economy. It is another aspect of the government’s efforts to boost international investment in technology-intensive industries.

With $10 billion in pledged capital from the state, the fund is designed like a private-equity firm, but will focus on growth capital. RDIF will source buy-outs in Russia of between $100 million and $1 billion. However, it will only participate if it can bring in at least one co-investor from abroad.

“The benefit to Russia will be financial returns [on the state’s equity investment] and the chance to bring in more foreign capital and know-how to key industries and sectors….

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