The Russian Retail Growth Fund (RRGF) was formed in March 2007. The fund is focused on industries driven by a surging consumer demand such as retail, fast-moving consumer goods (FMCG), transport and logistics, telecommunications, financial sector and service industries.
The fund seeks to invest primarily in companies that have the following attributes:
- robust business model supported by a long-term strategy;
- scale needed to exit through a sale or IPO in a three to five year time frame;
- significant growth potential in market share, product/service range and areas of presence;
- solid management track record and alignment of interests with the fund’s exit strategy;
- clear strategy to enhance transparency and implement corporate governance standards.
The investment strategy is to provide capital for growth/expansion, pre-IPO finance and capital for industry consolidation with geographic focus on the CIS and Russia. The target deal size is $30-50m. The fund acquires mainly non-controlling stakes in mid-size companies.