China’s Fosun to expand operation in Russia

Hong Kong-listed Fosun Group (Fosun) has teamed with two Russian partners to launch Fosun Eurasia Capital (Fosun Eurasia) in Moscow in an effort to secure mid- and long-term investments in the region.

Fosun Eurasia will target various asset classes including stocks, fixed-income products, private equities, debts and properties, while covering industries like energy, natural resources, consumption, manufacturing, and other industries throughout the region, according to a Fosun statement.

A spokesperson for the company added that they are not specifically looking at infrastructure like roads and airports, but at real estate and investments in corporates. Its investment scope, however, would include companies operating in sectors like oil and gas as well as ports.

The platform is to be seeded by Fosun, the spokesperson said without disclosing the amount this initial investment capital.  

“Russia is geographically a conduit linking Europe and Asia. With its own distinctive economic characteristics, Russia has strong influences in the region,” commented Guo Guangchang, Fosun's chairman, in the statement.

“Coupled with Fosun's financial support and specialised resources in different segments, this will contribute to better development of this investment platform in Russia for the long term development, facilitating realisation of Fosun's value investing principles in Russia and the entire Commonwealth of Independent States region.”

Apart from investment capital, Fosun Eurasia is expected to provide external investment advisory services, excluding infrastructure advisory service, to both local and international investors.   

Two Russian founders include Tanya Landwehr, former chief financial officer of TKB BNP Paribas Investment Partners, and Igor Danilenko, a former senior equity portfolio manager at the Saint Petersburg-based firm.

Fosun expects the platform to foster synergies with various of its other investment segments, which include property, financial services, healthcare, tourism and commerce, natural materials, mining and energy.