Private investment fund ONEXIM Group will pay US$500m for a 50% stake in the Russian investment bank Renaissance Capital.
The transaction is said to be subject to regulatory approval and will see Renaissance Group maintain management control of Renaissance Capital. ONEXIM Group will contribute to the strategic direction of the investment bank and will be able to nominate three of the seven board members of Renaissance Capital.
ONEXIM Group will purchase a 50% stake in Renaissance Capital following the issuance of new equity. Renaissance Group will hold 50% plus one share of the voting rights at Renaissance Capital. Renaissance Group’s holdings in Renaissance Investment Management, Renaissance Partners and Renaissance Credit remain unchanged.
President of ONEXIM Group Mikhail Prokhorov said: “Renaissance’s experienced team together with ONEXIM’s business ambitions and financial resources will enable the bank to dominate all its competition. Our partnership presents the opportunity to take Renaissance Capital to the next level.”
Earlier this year, Renaissance Capital raised a US$660m maiden private equity fund for companies in Russia and the former Soviet Union.