The Russian Direct Investment Fund (RDIF) and the Fundo Strategico Italiano (FSI) signed an agreement on November 26 to contribute roughly US$ 1.35 billion to a strategic investment vehicle designed to promote trade and foreign direct investment in the two countries. According to details about the agreement, each entity will contribute €500 million to the vehicle. The agreement was signed in the presence of Russian President Vladimir Putin and Italy’s Prime Minister Enrico Letta in Trieste.
Maurizio Tamagnini, CEO of FSI, seeks investments in “food, engineering, machinery and other technology-based industries,” he said in a statement.
The RDIF, since its inception two years ago, has been very active and successful in partnering with other sovereign wealth funds and national funds for joint investment purposes. Its first major partner was the China Investment Corporation (CIC) in October of 2011, creating a US$ 2 billion dollar vehicle set to be 70% focused on Russia with the other 30% going toward Chinese investments. The joint vehicle continues to seek funding from Asian investors with hopes to build the fund out to US$ 4 billion.
The boom in investment partners is not likely to end anytime soon.
There were 2 notable deals in 2012. The first was made with the Kuwait Investment Authority (KIA). The KIA agreed to a US$ 500 million co-investment deal. The result is that the KIA will co-invest in all RDIF transactions. Bader Mohammed Al-Saad, Chief Executive Officer and Managing Director, KIA, was named as an international advisor to the RDIF in 2011.
International Advisory Board – Public Funds
|Name||STEPHEN SCHWARZMAN||LEON BLACK||DAVID BONDERMAN||MARTIN HALUSA||JOSEPH SCHULL||KURT BJORKLUND|
|Title||Chairman and Chief Executive Officer, Blackstone Group||Chairman and Chief Executive Officer, Apollo Global Management||Managing Partner, TPG||Chief Executive Officer, Apax Partners||Head of European Operations, Warburg Pincus||Co-managing Partner, Permira|
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