UFG launches fourth fund

The Moscow-based private equity investor is seeking to raise its fourth buyout fund to invest in the Russian mid-market. It currently has two active funds: 2010-vintage UFG Private Equity Fund II, which raised $225m, and 2014-vintage UFG Private Equity Fund III, which held a final close on $204m.

Investors
LPs in the fund will include western institutions, funds-of-funds and family offices. The European Bank for Reconstruction and Development, which invested in UFG Private Equity Fund II but declined investments in the third fund, will not be making commitments, as the bank's operational approach is currently not to undertake any new business in the country.

Investments
The bulk of UFG's capital will invest in Russia-based companies in the mid-market with a turnover of $50-250m. In addition, the GP seeks to invest in one large company, typically at pre-IPO stage, to underpin fund returns through an early exit. UFG's third fund invested in Russian snack and confectionery producer KDV Group, in which it acquired a minority stake. 

The fund aims to provide expansion capital and buyout financing across a range of growing sectors, including TMT, consumer, healthcare and business services. UFG is seeking to deploy equity tickets of $14-40m.

People
UFG Private Equity – Dominic Reed (partner).

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