Private equity news
Aurora Russia Limited Reported 2010 Results, Shows Portfolio Growth of 24,8% and Expects Returning of Strategic Investor Interest in Russia
23.07.10 0:00
Private Equity Fund Aurora Russia Limited, focused on private companies in Russian financial, business and consumer services sectors, reported 2010 year results.
The fund invested in five companies at a cost of £73.9M. Investment valuation at 31 March 2010 shows a 24.8% increase over cost. The investments are Unistream (26%), Creditmart (100%), Flexinvestbank (100%), OSG Records Management (95,5%), SuperStroy (24,3%). All companies have little or no debt. Three of them are market leading companies in Russia. All of them are expected to grow in 2010 and to benefit from Russia’s recovery.
Aurora Russia Limited notes that Russia’s balance sheet is one of the most solid in the world. Russia’s anti-crisis stimulus was one of the largest supported by over $400 billion in FX reserves. Recovery started gaining momentum at the end of 2009 and in 1Q 2010 GDP grew 2.9% over 1Q 2009. The World Bank has recently forecast GDP growth of 4.5% for 2010.
With improving visibility for the corporate sector and income for the household sector banks have started announcing rate cuts and Aurora Russia Limited expects to see a growth in lending, also according to the fund the lower-priced segment of the retail market will see continued growth.
The fund notes that strategic investor interest in Russia, as a growth market, appears to be returning.
Aurora Russia Limited
Aurora Russia Limited is a listed investment company on the London Stock Exchange. It was established to acquire interests in small and mid-sized private companies in Russia which are focused on the financial, business and consumer services sectors where there is a potential for growth together with viable exit opportunities within two to four years.
Aurora Russia Limited is managed by Aurora Investment Advisors Limited in Guernsey.
Source: AllEquityFunds, Aurora Russia Limited
