Aurora Russia Limited, an investment vehicle established to make equity investments in small and medium-sized private Russian companies, is to seek an admission on the London Stock Exchange’s Alternative Investment Market (AIM.) The fund is seeking to raise up to £150m, before expenses, through the placing of up to 150,000,000 ordinary shares at a price of £1 per ordinary share.
The management team is led by two individuals, James Cook and John McRoberts, who combining over 20 years’ of experience of working with approximately 120 small and mid-sized companies in Russia. Cook has over 12 years’ experience advising, founding and managing companies in the consumer finance, residential mortgage lending and leasing sectors in Russia. Most recently, he was the former chairman and CEO of GE Consumer Finance Russia. McRoberts has over nine years’ experience providing corporate finance advice to companies operating in Russia. He was the head of the corporate finance advisory practice at Deloitte & Touche in Moscow and has completed a number of transactions in Russia in the services sectors.
Aurora Russia will invest in small and mid-sized private Russian companies focused on the financial, business and consumer services sectors where the directors believe there is potential for growth and lucrative exit opportunities within two to four years of making such investments.
The fund will target companies with enterprise values of up to £100m and will seek to secure controlling stakes and board representation taking equity stakes of more than 20% in each portfolio company. It is anticipated each equity investment will typically be between £5m and £25m. The directors anticipate investing in ten to 12 such companies and intend to invest the funds within 18 months of admission to AIM.