EBRD set to act as cornerstone investor in private equity fund

The European Bank for Reconstruction and Development (EBRD) is to act as a cornerstone investor in Elbrus Capital Fund II, a private equity fund being launched to invest mainly in Russia but also in neighbouring states.

The bank has agreed to invest up to $50m (£32m), but its investment will not exceed 25 per cent of aggregate commitments to the fund.

The target size for the new fund is $500m. The plan is to make equity investments in the regions of Russia and other Commonwealth of Independent States (CIS) countries, focusing on small and medium-sized companies.