Renova's stake in Renova Capital Advisors will be reduced to 30%, while Oleg Tsarkov and his three partners will increase their stake to 70%.
Oleg Tsarkov is the managing director of Renova Capital Advisors; his partners are three other executives - Dmitri Levonian, Yevgeny Rudakov, and Mikhail Stukalo. Tsarkov has told the media that control of Renova Capital Advisors, which specializes in private equity investments, is being transferred from Renova (Viktor Vekselberg's company) to the four executives. According to Tsarkov, there are plans to change the company's name to SV Advisors or S Capital Advisors. Renova spokesman Andrei Shtorkh has confirmed this information about impending changes.
Renova decided to move into private equity investments in 2003, recruiting Tsarkov, former head of Troika Dialog's investment banking division. He was set the task of establishing the business of private equity investments in various sectors (until then, Renova was only an industrial investor). Initially, Renova assumed all the risks, investing $165 million in its first fund - Renova Capital One.
Moreover, according to Shtorkh, there was an agreement with Tsarkov that once the business was established and Renova's funds started attracting external resources, the executive team would get 70% of the fund management company. Renova Capital One's money has been invested in eight project, with an investment horizon to 2009; three of the projects have already produced "good or very good" results for the fund, according to Shtorkh.
The second fund - Russian Retail Growth Fund (RRGF) - has managed to attract $240 million from individual investors and funds; a further $60 million was contributed by Renova, the anchor investor, according to Tsarkov. RRGF has already invested some of its money: in SPSR Express, the Holiday retail network, and SPAR. Shtorkh says that the third fund - Earlier Stage Alternative Fund ($30 million, investing in IT) - is attracting money from the market only.
Russia New Growth Fund managing partner Alexei Panferov says that the separation of a private equity fund's management from the company that provided its initial capital is typical for the industry. For example, Kirill Dmitriev - manager of the American government's money in the USA-Russia Fund - went on to attract private investors to the Delta Russia Fund.