11 Feb 2010 14:19

Wermuth plans to raise $500 mln in 2010 for Russian investment

MOSCOW. Feb 11 (Interfax) - Wermuth Asset Management plans to raise $500 million from investors this year for investment in Russia, Managing Partner Jochen Wermuth told journalists on Thursday.

The electricity sector will receive $200 million, another $200 million will go to new private investment funds and the remaining $100 million will be invested in long/short equity.

Yields on investment in non-public companies and electricity exceed 30%-35%, he said.

Numerous meetings with potential investors have painted a mixed picture of the investment climate in Russia, Wermuth said. For example, the Canadian state pension fund, which has a mandate to invest in the BRIC countries (Brazil, Russia, India and China) has decided not to invest in Russia for at least five years.

Wermuth is hoping to meet with private investors from Canada, the Middle East, Australia and Japan, as well as with Swiss private estate managers.

Wermuth AM currently has $400 million under management.

Wermuth AM (Frankfurt), founded in 1998, manages the Greater Europe Fund, Greater Europe Deep Value Fund and Greater Europe Deep Value Fund II. The funds invest primarily in companies in Central and Eastern Europe, including Russia and the CIS.