VTB Capital Private Equity and Special Situations has closed the acquisition of a USD30m minority stake in Brunswick Rail, the Russian freight car leasing company.
To date, VTB Capital Private Equity and Special Situations has invested over USD500m in a number of Russian companies in joint projects with international private equity funds and operational partners.
The funds will be invested primarily in building up Brunswick Rail’s freight railcar fleet, which currently stands at 12,500. Brunswick Rail estimates that the Russian rail market will require more than 700,000 new railcars in the next ten years to replace retired fleet and ensure transportation growth.
Yuri Soloviev, president at VTB Capital, says: “We see growing transportation needs from major Russian industrial companies. With the outlook on Russian railways development in mind, we see serious value growth potential in this asset.”
Vladimir Lelekov, chief executive and managing partner at Brunswick Rail, adds: "We are happy to see VTB Capital, a Russian investment market leader, as one of our shareholders. With VTB Capital funding the company, we can proceed with our investment program and speed up the development pace of Brunswick Rail.”
