VTB Capital and I2BF Global Ventures have jointly launched a USD100m nanotechnology venture fund with cornerstone backing from the Russian state nanotechnology fund RusNano and Kazyna Capital Management, the sovereign wealth fund of the Republic of Kazakhstan.
These entities have committed USD25m each to the new fund, with VTB Capital and I2BF expecting to raise a further USD50m from external investors. The agreement was signed on 21 December 2011 in Almaty at a ceremony attended by Aset Isekeshev, Vice-Premier of Kazakhstan and Minister of Industry and New Technologies, and will soon be followed by the opening of offices in Moscow and Almaty.
The decision to establish the fund was taken during VTB Capital’s Investment Forum “Russia Calling!” in October 2010, where RusNano, Kazyna Capital Management, VTB Capital and I2BF Global Ventures signed a memorandum agreeing to establish a nanotechnology fund focused on Russia and Kazakhstan.
The 10-year fund will focus on technology transfer into the two countries as well as domestic nanotech investment, while also driving further private capital inflows into the nanotech sector by leading deals for international syndication. Potential pipeline deals include desalination technologies, oil processing, diabetes treatments, semiconductor technologies and LED/OLED, while future investment themes will include energy production, including alternative energy; increasing efficiency in the petroleum and gas industry; telecommunications; biotechnology; electronics and environmental technology. Activities for the fund will be divided equally between Russia and Kazakhstan.
Aidar Kaliev (pictured), Head of Venture at VTB Capital, says: “We think that the fund is a precedent. This is the first time in the history of the CIS that a venture fund will invest in frontier technology in both Russia and Kazakhstan. The initiative is very important taking into account the active collaboration between the two governments to launch the Common Economic Space. VTB Capital is excited to offer its experience and global platform to ensure the success of this fund”.
“Nanotech is going to be a major theme of the coming century in a range of different sectors.” says Ilya Golubovich, Managing Partner at I2BF Global Ventures. “I’m pleased that our brilliant research team and global partner network will be helping drive the deal cycle for the Russia-Kazakhstan Nanotechnology Fund and assisting in technology transfer to the region.”
Origination, execution and monitoring of deals, in addition to other investment management functions, will be undertaken jointly by VTB Capital and I2BF Global Ventures.
