Alfa Capital targets $250m for Russia

Moscow-based private equity firm Alfa Capital Partners has held a first closing of a first-time fund aimed at Russia.

Alfa Capital Partners, the private equity arm of Russian financial industrial conglomerate Alfa Group, has held a first closing of Alfa Private Equity Partners on $105 million (€88 million).

The vehicle has a target of $250 million, which it is expected to reach later this year.

A spokesperson for Alfa Capital Partners said that Alfa Group is an anchor investor in the new fund. Other investors, said the spokesperson, included financial institutions and family offices, but declined to give names.

Alfa Capital Partners typically invests $10 million to $50 million in medium-sized companies in Russia, Ukraine and the CIS. The firm targets assets in the consumer products and services, leisure, media, publishing, retail, health care, pharmaceuticals, construction materials and logistics sectors.

The fund is managed by a team of nine professionals, led by Alfa Capital Partners CEO Richard Sobel. Sobel previously worked with the European Bank for Reconstruction and Development in Moscow and was co-founder and senior manager of Baring Asset Management’s $160 million private equity fund, First NIS Regional Fund.

In April 2005, Alfa Capital Partners invested in and became a regional manager of The Great Circle Fund, a $180 million private equity fund investing in maritime transportation, infrastructure and logistics in Russia, Ukraine, countries in the former Soviet Union, Southeastern Europe, the Balkans, Turkey and other parts of the Mediterranean.

Founded in 2003 by Alfa Bank and Alfa Group, Alfa Capital Partners is a private equity and real estate firm based in Moscow. The firm is currently raising a $150 million real estate vehicle targeting property developments and income-producing assets predominantly in Moscow, St. Petersburg and Kiev.