Renova of Victor Vekselberg established a separate fund of direct investments.


Renova of Victor Vekselberg established a separate fund of direct investments for acquisitions in the consumer sector from retail chains to production of food products. It invested in $60 million in Russian Retail Growth Fund founded by Oleg Tsarkov. Tsarkov has already collected $180 million and plans to attract $120 million.

The Renova group of Victor Vekselberg manages assets in oil industry ( TNK-BP), metallurgy (United Company Rusal), mining, chemical, construction industries, electric energy sector, public utilities etc. At the end of 2005, net assets of the group amounted to $9 billion.

Renova went into direct investments in 2004 having established managing company Renova Capital Advisors and Renova Capital fund of direct investments worth $165 million. Former Managing Director of Troika Dialog, Oleg Tsarkov, became the head of the company. In Renova Capital Advisors, Tsarkov is controlling shareholder and in Renova he is a minority shareholder. By the middle of 2006, all money of Renova's Capital fund where Renova was the only investor was invested in shares of five companies: pharmaceutical Natur Produkt, logistical Relogix and International Logistic Partnership, Kazakh gold mining company Eurasia Gold and telecommunication company Corbina Telecom. Tsarkov says that Renova Capital will own these stakes no later than until 2009 and in two or three projects the fund may withdraw already in 2007.

Tsarkov did not stop at that. In 2006, he established the Russian Retail Growth Fund (RRGF) investing in promising segments of the consumer sector. In the new fund, Renova became an anchor investor, having invested $60 million. Tsarkov reported that he attracted $120 million more but did not say who gave this money. Tsarkov only points out that Renova is the largest participant of the fund and both Russian and foreign investors participate in the project. The new fund will participate in the projects for five years.

Tsarkov says that RRGF plans to attract the remaining $120 million in a year and to invest all money of the fund until the end of 2008. Of the already received $180 million, the fund placed $115 million. This money was spent on the purchase of blocking stakes in retail chains Spar and Holiday Classic and delivery service SPSR-Express.

Tsarkov says that the fund is going to buy into dynamically growing companies in the consumer sector of Russia, Ukraine and Kazakhstan. For instance, RRGF is interested in the non-food retail trade, production of foods and other consumer goods, financial services, transport and logistic. Tsarkov states: "The objects of investments have already been determined in general" but does not name the objects. He adds: "Overall, we plan to buy stakes in six to eight companies investing from $20 million to $50 million in each."