Russian Direct Investment Fund and Mubadala establish co-investment fund
St Petersburg and Abu Dhabi, June 20, 2013 – The Russian Direct Investment Fund (RDIF) and Mubadala Development Company (Mubadala), the Abu Dhabi-based investment and development company, today announced the launch of a $2 billion co-investment fund to pursue opportunities in Russia. The definitive agreement was announced at the St Petersburg International Economic Forum 2013 by CEO of RDIF Kirill Dmitriev and CEO of Mubadala Khaldoon Al Mubarak.
The fund will predominantly focus on long-term investment opportunities across a range of industry sectors, acting as a catalyst for direct investment in Russia. The announcement is aligned with Mubadala’s plans to establish a strong presence in key international markets.
Mubadala and RDIF are each committing $1 billion. The majority of Mubadala's commitment will be deployed in opportunities that will be evaluated on a deal-by-deal basis while some of the capital will be invested as an automatic co-investment into RDIF deals.
Kirill Dmitriev, CEO, RDIF said: “We are delighted to be forming this unique partnership with Mubadala, particularly as there are many synergies between both companies. Mubadala’s experience and track record in multiple industry sectors will enable significant value creation in our co-investments, and will increase foreign direct investment from Abu Dhabi into Russia. We value our cooperation with partners and the new joint venture will be another major step in strengthening our business collaboration.”
Khaldoon Al Mubarak, Mubadala’s Chief Executive Officer, commented: “A partnership approach is at the heart of Mubadala’s business philosophy, and given the track record and caliber of the RDIF team we are confident that our collaboration will deliver long-term financial returns and development opportunities”.
Russian Direct Investment Fund (RDIF) was established in June 2011 to make equity investments primarily in the Russian Federation. RDIF’s management company is a 100% subsidiary of Vnesheconombank. 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. Further information at rdif.ru
About Mubadala Development Company
Established and owned by the Government of Abu Dhabi, the company’s strategy is built on the creation of partnerships and on long-term, capital-intensive investments that deliver strong financial returns and tangible social benefits for the Emirate of Abu Dhabi, and that contribute to the growth and diversification of its economy. Mubadala brings together and manages a multi-billion dollar portfolio of local, regional and international investments and partners with leading global organizations to operate businesses across a wide range of industry sectors. These include aerospace, semiconductors, metals & mining, oil & gas, renewables, information & communications technology, healthcare, real estate & infrastructure, and services. For more information about Mubadala please visit www.mubadala.com
For media information, please contact:
T: +971 50 953 2304
T: +971 50 616 8720
Press Secretary of RDIF
T: +7 964 726 1773