Renova Capital aims to achieve long-term capital appreciation through investment in the Russian and CIS companies with a robust business model and impressive growth prospects, managed by a dedicated management team. The target investment size is $20-$50 million, typically to finance the further expansion of the portfolio company. The fund acquires equity stakes or equity-related instruments in the portfolio companies with a view to exit investments in 4-5 years either through a strategic sale or through public market liquidity.
Renova Capital invests primarily in the industries driven by the surging Russian consumer demand, such as retail, FMCG, transport and logistics, telecommunications, financial sector and services industry. While aiming at portfolio diversification, the strategy is to focus on Russian retail and FMCG. Russia ranks among the top 10 retail market in the world, with an estimated $245 billion in retail sales in 2005 and a five-year historical growth rate of 23%. The retail market is expected to grow at 15%-18% annually in 2006-2010 driven by strong oil prices, continuing structural reforms, growth in nominal salaries, strengthening ruble and growing consumer finance availability.
Renova Capital manages its portfolio investments through representation on the Board, executive committees and working groups, as well as through direct and proactive business support.
