Russian billionaire Vladimir Potanin’s Interros and JP Morgan Chase’s One Equity Partners agreed to put $500 million each into a new $1 billion private equity fund. The fund will make expansion-stage investments in Russian companies in consumer retail, manufacturing and service sectors. JP Morgan will help the fund to secure debt financing. This is the first major Russia-focused private equity fund since the start of financial crisis in 2008.
Founded in 2001, One Equity Partners (OEP) manages funds of US$ 8 billion exclusively for J.P. Morgan. OEP focuses on opportunities for industrial consolidation. In Europe, OEP is a majority shareholder of Süd-Chemie AG and Austrian Constanta Packaging, core shareholder of MDAX-listed company Pfleiderer AG, and core shareholder of Carlson Wagonlit Travel and the Dutch Schoeller Arca Group.
The other major U.S. private equity firm TPG Capital recently made a Russian private equity investment when it acquired a stake in Lenta supermarket chain. DFJ, VTB Group and RUSNANO agreed to form a $100 million Russian venture capital fund DFJ-VTB Aurora Fund.