Russia names managers for government VC fund

Russia’s economics minister, German Gref, has announced the name of the three companies selected to manage the funds of the Russian Venture Company, set up by the government to diversify the economy away from commodities and invest in high-tech projects.

The firms selected are VTB Asset Management, a subsidiary of state-controlled foreign trade bank Vneshtorgbank, Bioprocess Capital, a specialist in in bio- and medical technologies, and a third group led by Tamir Fishman Group, an Israeli financial services group.
 

Under the tender terms, each is now charged with securing private investment for venture funds totalling 51 per cent of the fund’s value. This will be matched by the Venture Company in which the government will hold a 49 per cent stake. Overall, the government will allocate 4 billion rubles ($155 million), Gref said.

The Economics Ministry will soon announce a second tender to manage the Venture Company funds worth 10.8 billion rubles ($419 million), Gref told a government meeting.

President Vladimir Putin expressed the hope that venture funds would yield results in the near future. “The venture funds will develop their activities in coming years and their operations will yield real results,” he told the ministers.