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07 September 2009
Aurora Investment Advisors Limited to launch a new fund to capitalise on investment opportunities in Russia
Aurora Investment Advisors Limited (“Aurora Investment Advisors”), which currently manages Aurora Russia Limited, the AIM-quoted investment vehicle established to make equity or equity-related investments in small and mid-sized private companies in Russia (“Aurora Russia”), today announces that it proposes to establish Aurora II LP, a limited partnership to be established in Guernsey (“Aurora II LP” or the “Fund”) to capitalize on the continued demand for investment in Russia. It is anticipated that the Fund will apply for registration as a registered closed-ended collective investment scheme by the Guernsey Financial Services Commission (“GFSC”) pursuant to Guernsey law.
Aurora II LP will be able to invest in Aurora Russia’s shares and to make direct investments in private, growth companies primarily in the financial, consumer and business services sectors in Russia. The Fund will take blocking minority or majority stakes in these companies with an exit horizon of 3 to five years. The Fund has agreed co-investment rights with Aurora Russia.
Aurora II LP will have a proposed fund size of up to £50 million on final closing with investment from institutional and sophisticated private investors.
Commenting on the launch, John McRoberts, Director of Investment Advisors, said:
“Aurora II LP will enable us to take advantage of the continued investment opportunities we are seeing in Russia. The medium-term drivers of the Russian economy remain intact despite Russia facing its toughest challenge since the 1998 crisis. The market sectors which Aurora II LP will focus on, and which Aurora Russia has successfully invested in, have been growing more quickly than Russia’s GDP and it is anticipated that this trend will continue. With debt financing becoming difficult to secure, the need for private equity capital in Russia is greater than ever. Good companies in Russia which historically would have been able to access the debt markets will need to rely on other sources of financing such as private equity to fund future growth. Reduced availability of financing for companies means valuations will become more reasonable and only the best companies will be able to raise private equity capital. We expect high returns for private equity capital invested in 2009/2010.”
James Cook, Director of Investment Advisors, added:
“The companies which we have invested are market leaders in their sector which should enable them to use this advantage to gain market share over the coming months. Russia remains one of the largest potential consumer markets in Europe and should remain an attractive market for strategic investors seeking to tap into the underserved demand of consumers for the sectors we are targeting. Now more than ever, good companies are seeking investment to secure their share of the market.”
*Correction: Please note that this announcement replaces the previous announcement dated 18th May 2009 which referred to the Fund’s first closing as having occurred. For the avoidance of doubt, at this point in time the Fund has not yet been established as a matter of Guernsey law nor has an application for registration of the Fund as a registered closed-ended collective investment scheme been lodged with the Guernsey Financial Services Commission.
Aurora
Tel: +7 (495) 644 1662
John McRoberts
James Cook
Investec
Tel: +44 (0) 207 597 5000
Martin Smith
Patrick Robb
Numis
Tel: +44 (0) 207 260 1000
Rupert Krefting
Nathan Brown |
