Fund to concentrate on foreign investment exposure independent of third party market events
Saint Petersburg, Russia, Feb 24, 2006 -- Eurasian Private Equity Group Ltd., the Saint Petersburg-based alternative investments company,
has formally registered its EPEG Small Company Buyout Fund in the Republic of Cyprus. With the final registration finished, the Fund expects to make a formal announcement on fundraising in the coming days. Russia has seen strong growth in establishment of investment vehicles in 2005 and the first months of 2006. The quickening pace of vehicles and foreign investment seems to be connected with the strong economic growth fueled by a torrid commodities market and continuing reforms by the Vladimir Putin government. Commenting on the types of returns available in the Russian market, managing partner Jeffrey Letino said "2005 was a strong year for Russia-focused funds speculating on the stock market. But as we’ve seen over the last five years, performance is largely hit or miss as events drive a market with little liquidity and limited opportunities. We’ve created the Fund to attempt to give access to similar returns based on investments we can control and build instead of being hostage to market events. I think this makes more sense from a risk-return standpoint…" Board Chairman and Investment Director Dr. Igor Kostikov added, "The EPEG Small Company Buyout Fund will be invested using a due diligence and risk management process that we feel is one of the most advanced in the Russian small market space, this is important for investors looking for exposure to the Russian market while wary of its unpredictability."
The Fund is intended to provide sophisticated investors with an opportunity to invest in the most dynamic aspects of the small company buyout and property markets of Russia & the former states of the Soviet Union. The EU-regulated fund is expected to pursue acquisitions of un-restructured former-Soviet enterprises, operating high-growth companies in the service sector and properties for development. The EPEG Small Company Buyout Fund will be invested using the same investment strategy as EPEG’s current investments and will be managed by its Board of Directors, Dr. Igor V. Kostikov, Jeffrey Letino and Harris Stavrinides. Dr. Kostikov, the former Russian cabinet minister and head of Russia’s financial markets from 2000-2004, will serve as the Chairman of the Board of Directors and Fund Investment Director. Dr. Kostikov is the founder of one of Russia’s leading brokerages, AVK Saint Petersburg though he no longer retains an interest. He has a long history of high profile private equity investments in Russia including projects with the World Bank, International Finance Corp, and European Bank for Reconstruction and Development among others.
EPEG announced its intention to create a Western investment-targeted Fund in June. "Giving Western sophisticated investors access to the many high-performing niche markets in Russia is a win-win situation. Russia’s high level of economic growth alone is not enough to develop what is still a fragmented market. While investors from developed markets can benefit from possible higher rates of return compared to their home market," said Letino. News and other information about EPEG is available at www.eurasianequity.com.
No action has been taken to permit the advertisement or distribution of investment materials in any jurisdiction where action would be required for such purpose. Accordingly, no person receiving information in any territory may treat it as constituting an invitation to him to place funds for investment nor should he in any event use such an offer unless in the relevant territory such an invitation could lawfully be used without compliance with any registration or other legal requirement. The opinions expressed in this press release are those of Eurasian Private Equity Group and should not be construed as investment advice. In addition the information should not be construed as a recommendation to buy or sell a security.