RDIF partners with Mitsui for latest investment

Financial News, 06.02.2014

RDIF said in a statement that it has teamed up with Japanese corporate Mitsui & Co to invest an undisclosed amount in Russian textiles company Cotton Way.

The deal is a follow on transaction from RDIF’s joint investment of $109 million in Cotton Way alongside the European Bank for Reconstruction and Development, first announced last month. A spokeswoman for the firm declined to comment on the size of the new investment or whether the RDIF had taken a majority stake.

The investment in Cotton Way is the first from RDIF's Russian-Japanese investment platform, formed in a joint venture with the Japan Bank for International Cooperation in April last year.

RDIF was set up in June 2011 to invest $10 billion in Russian companies and increase the profile and appetite for Russian investment from overseas. Its management team is controlled by Russian development bank Vnesheconombank.

The fund counts the leaders of private equity firms Blackstone Group, TPG Capital, Apax Partners and Permira among its advisers.

Since its inception, RDIF has teamed up with a number of global development finance institutions. Last year it partnered Mubadala Development Company, a subsidiary of the Abu Dhabi government, and China Investment Corp to search for deals.

Despite the push for an increase in foreign investment in Russia, the latest figures from data provider Dealogic show new buyouts in the country fell last year. According to the data, there were seven new buyouts worth $380 million in Russia last year, down from 16 worth $597 million in 2012.

The Russian Direct Investment Fund — the Kremlin-backed investment fund advised by some of the private equity industry’s biggest names — has struck its first deal with a Japanese buyer.