JPMorgan and Interros Set Up Russia Fund

October 20, 2009

One Equity Partners, the private equity unit of JPMorgan Chase, and Interros Holding, a Russian company controlled by Vladimir Potanin (one of Russia's richest men and a 25% stakeholder in mining group Norilsk Nickle), are creating a $1 billion fund to invest in Russian companies and possibly obtain distressed assets from state banks.


One Equity Partners, the private equity unit of JPMorgan Chase, and Interros Holding, a Russian company controlled by Vladimir Potanin (one of Russia's richest men and a 25% stakeholder in mining group Norilsk Nickle), are creating a $1 billion fund to invest in Russian companies and possibly obtain distressed assets from state banks.

The new firm, which is the first significant Russia-focused fund since the start of the financial crisis, will receive $500 million of its initial capital from each of its two founding partners. That initial $1 billion capital will be used to provide expansion capital to dynamically growing businesses and provide equity to strengthen the balance sheets of portfolio companies and relieve the burden of excess leverage. In addition, the new firm will provide portfolio companies the management expertise of both One Equity Partners and Interros and access to additional debt and equity capital through its relationship with JPMorgan Chase. It may also try to bring some state controlled firms back into private ownership. The new firm is seeking to invest in core sectors of the Russian economy, including consumer products, manufacturing and services. This strategy is a shift from Interros' investment history, which usually invests in Russia's flagship industries of oil and gas production and mining. The new firm is seeking to make at least three to four investment next year, each transaction being capped at about $300 million. For more information, read the Interros Holding Press Release here.


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Investment Manager Strategic Investments, Private Equity Strategic Investments, Transactions