RDIF attracts Saudi partner to expand the Russia-China Investment Fund
Press release, 25.10.2018
Riyadh, October 25, 2018 - The Russian Direct Investment Fund (RDIF), the sovereign wealth fund of Russia, announces plans to add a new partner – Public Investment Fund (PIF), the sovereign wealth fund of the Kingdom of Saudi Arabia, to the joint Russia-China Investment Fund (RCIF). RCIF, an open cooperation platform, as indicated in its founding documents, can raise additional capital from international institutional investors subject to certain conditions.
The agreement sets out that PIF will contribute $500 million to RCIF. Thus, RCIF will have a total of $2.5 billion of capital under management (of which RDIF and China Investment Corporation contributed $1 billion each). The agreement creates a trilateral Russian-Chinese-Saudi investment fund.
The agreement was announced at the 2018 Future Investment Initiative, an international platform for expert-led debate between global leaders, investors and innovators with the power to shape the future of global investment.
Since its establishment in 2012, RCIF has invested and committed to more than 25 projects. Investments have been focused on the forestry industry, infrastructure, consumer, financial and information technology sectors. Currently, there are more than 20 projects valued over $1 billion under consideration by RCIF. These projects are in the tech sector, retail, agriculture and food production, transport and logistics, e-commerce, financial services, real estate and healthcare.
Kirill Dmitriev, CEO of Russian Direct Investment Fund (RDIF) and Co-CEO of Russia-China Investment Fund (RCIF), noted:
“These agreements with our partners take RCIF to a new global level − three sovereign wealth funds are joining forces to jointly implement investment projects. This trilateral venture will not only unify their expertise in Europe, Asia and the Middle East, but will also allow the fund's portfolio companies to receive support in several key markets at once. It is important that we do not limit the joint fund to three partners, we are currently negotiating with other RDIF partners about the possibility of joining the fund.”
Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Further information can be found at www.rdif.ru
Russia-China Investment Fund (RCIF) is a joint fund, established by the Russian Direct Investment Fund and China Investment Corporation (CIC). RCIF aims to develop bilateral economic, trade and investment relations between Russia and China. Further information can be found at www.rcif.com
Public Investment Fund – The Public Investment Fund seeks to become one of the largest and most impactful sovereign wealth funds in the world, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia.
To achieve this, the Fund is building a world-class, diversified portfolio through investments in attractive, long-term opportunities across sectors and asset classes at both the domestic and international level. Working alongside global strategic partners and renowned investment managers, PIF acts as the Kingdom’s main investment arm to deliver a strategy focused on achieving attractive financial returns and long-term value for the Kingdom of Saudi Arabia, in line with Vision 2030.
In October 2017 at the Future Investment Initiative, the Public Investment Fund Program (2018-2020) was launched as part of the Kingdom’s Vision 2030 Vision Realization Programs (VRP). The PIF Program is one of twelve VRPs and acts as a roadmap for the next three years to strengthen PIF’s position as the engine behind economic diversification in the Kingdom and role in transforming Saudi Arabia into a global investment powerhouse. The program will see the Fund’s Assets Under Management increased to over $400 billion by 2020 and outlines how PIF aims to complement private sector development in the Kingdom through its new domestic investment, split between the Fund’s Saudi Holdings, Saudi Sector Development, Saudi Real Estate & Infrastructure Development, and Saudi Giga-Projects. For further information please visit: www.pif.gov.sa.
For additional information contact:
Arseniy Palagin Andrew Leach / Maria Shiryaevskaya
Russian Direct Investment Fund Hudson Sandler
Press Secretary Tel: +44 (0) 20 7796 4133
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
Yury S. Trofimov