Barings third Russian fund

Baring Vostok Capital Partners, the Russian private equity firm, closed its third investment fund at US$400m, up from an initial target of US$350m, on the back of an oversubscription.

Baring Vostok Private Equity Fund III will follow the strategy that Baring Vostok has implemented over the past 10 years, with a focus on the oil and gas, consumer products, media, telecommunications, and financial services sectors.

It will acquire companies operating principally in Russia, Ukraine, and elsewhere in the former Soviet Union. More than half the fund’s capital will be subscribed by shareholders in Baring Vostok’s existing funds, with the balance sourced primarily from institutional investors in Europe, North America, the Middle East and Asia. UBS was the sole global placement agent.

“The medium-sized businesses on which we focus are mostly growing fast, generating strong profit margins, and are generally not exposed to the political risks that have impacted some of the countries’ largest companies,” said Michael Calvey, co-managing partner of Baring Vostok.

Baring Vostok has invested US$336m in 40 private equity investments through the preceding First NIS Regional Fund, the Baring Vostok Private Equity Fund, or managed accounts on behalf of specific shareholders. Of these investments, 23 have been fully or partly realised, generating a realised gross internal rate of return (IRR) of 44% per annum and a realised multiple of invested capital of 3.8x.

Baring Vostok Capital Partners is a member of Baring Private Equity International.