RDIF Invests in Successful IPO of Leading Russian Medical Group MDMG

Press release, 12.10.2012

Moscow, 12th October 2012 – Russian Direct Investment Fund (RDIF) announces that it has invested USD 50 million in MD Medical Group (MDMG) together with the world’s largest asset manager BlackRock (on behalf of funds and accounts under management by BlackRock Investment Management (UK) Limited), Siguler Guff’s Russia Partners, a market leading Russian private equity fund and several other qualified institutional investors during the IPO.

MD Medical Group, which operates the Mother and Child chain of clinics, is the leading and fastest-growing provider of private women’s and children’s healthcare in Russia. The Company operates twelve modern medical clinics and hospitals in Russia. MDMG is led by founder and Chairman Dr Mark Kurtser, a pioneer of in-vitro fertilization and world-class maternity care services in Russia.

RDIF will now use its network of relationships with regional governments to support the development of MDMG’s business across Russia. MDMG has a proven ability to build and operate world-class clinics and RDIF is investing in replicating their experience across the country.

Siguler Guff’s Russia Partners will assist the company in expanding its relationships with leading teaching hospitals and medical universities worldwide.

“We are delighted to have played an important role in MDMG’s growth capital raising, and as a key shareholder we look forward to partnering with Dr Kurtser to bring the services of his company to more Russian patients,” said Kirill Dmitriev, Chief Executive Officer of RDIF. “We believe in Russia’s private healthcare market because it is an important growing industry that performs equally well in good and challenging markets. We like MDMG because of its strong leadership, clear growth strategy and proven ability to train up excellent medical professionals.”

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Russian Direct Investment Fund (RDIF), established in June 2011, is to be capitalized with $10 billion in Russian government funds to make equity investments that generate strong returns. In each investment it makes, RDIF is mandated to secure co-investment that as a minimum matches its commitment, thus acting as a catalyst for direct investment into the Russian economy. RDIF’s Management Company is a 100% subsidiary of Vnesheconombank (VEB). Additional information is available at www.rdif.ru
 

Contacts for additional information:
For the RDIF:
Quinn Martin
Frontier
Tel +7 495 797 3790
Quinn@frontierpr.com