Eurasian Private Equity Group to provide Western capital access to Russian niche buyout market
Saint Petersburg, Russia, Nov 11, 2005 -- Eurasian Private Equity Group Ltd., the Saint Petersburg-based alternative investments company, has submitted
a formal application for licensing to the Central Bank of Cyprus for its first private equity fund. The Fund will bring together prominent Russian investment manager Dr. Igor Kostikov and two expatriates, Jeffrey Letino and Harris Stavrinides as managing partners. The idea of the Fund is to open up the lucrative but insulated small market buyout space to Western investors. The space is currently dominated by domestic capital, often cycled through offshore entities and back into Russia. No other registered investment fund in Russia currently exists for foreign investors to gain exposure to buyouts of smaller unlisted companies. Currently, limited partners looking for access to Russia’s outsized returns have been limited to funds like Delta Private Equity which focus on mid-cap Russian companies and stock trading funds which speculate on the Russian stock exchanges and are captive to political, social and economic events. As too many investors know after YUKOS, that can be a risky proposition.
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 investment fund in June.
Eurasian Private Equity Group is an alternative investment management firm headquartered in Saint Petersburg, Russia. With a concentration in small company buyouts, privatizations and real estate acquisition and management, EPEG combines Western management techniques with highly localized knowledge to create value. EPEG originates, structures and conducts buyouts of under-performing companies with significant real estate assets which lack either the management or funding to leverage their market opportunities. 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 Ltd. 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.