Baring Vostok Capital Partners
Encyclopedia
Baring Vostok Capital Partners is an independent private equity firm focused on investments in Russia
and the Commonwealth of Independent States
. The firm, which is the largest private equity firm in Russia, invests across a broad range of industries including oil and gas, consumer products, media and technology, telecommunications and financial services.
From it founding in 1994 through 2004, the firm was a subsidiary of Baring Private Equity International (BPEP International) which was an affiliate of Barings Bank In addition to Baring Vostok, the affiliates of BPEP International include Baring Private Equity Asia as well as Baring Private Equity Partners India, founded in 1984. BPEP International's Latin America affiliate is known as GP Investments
, a leading private equity firm in Brazil. Collectively, the firms represent over $7.1 billion in capital commitments as of the end of 2011.
With offices in Moscow
, the firm has raised over $2.1 billion across four investment funds. The firm’s name referenes the Vostok spacecraft which was the first manned spacecraft operated by Russian cosmonaut Yuri Gagarin
.
Baring Vostok is best known for its early stage investment in Russian search engine, Yandex
, acquiring a 35.7% stake in the business in 2000. At the time of the Yandex IPO, Baring Vostok is estimated to have generated value of approximately $4 billion, representing a return on its original $5 million investment in excess of 800x. Among Baring Vostok's most other investments are Volga Gas, Borjomi Mineral Water
, Ozon.ru
, Burren Energy
, CTC Media
, Nezabudka and Golden Telecom
.
The firm has been named Russian Private Equity Firm of the Year by Private Equity International.
and Sovlink, a Russian-American merchant bank. Baring Bank’s ties to Russia traced back several centuries and Barings was the primary international bank for the Russian czars.
The First NIS Regional Fund was originally managed by a team of investment professionals from Barings and Sovlink including current Baring Vostok senior partner Michael Calvey. With $160 million of investor commitments, the fund ultimately returned $620 million to investors over the life of the fund. In 1997, Baring Vostok Capital Partners, became an affiliate of Baring’s BPEP International. Following the collapse of Barings Bank, the ownership of BPEP International was assumed by the Dutch bank ING Group
.
In 2001, the firm completed fundraising for the Baring Vostok Private Equity Fund. With $205 million of investor commitments, Baring Vostok’s was the first foreign private equity fund raised in the aftermath of the 1998 Russian financial crisis.
In May 2004, BPEP International completed a management buyout
from ING Group
, which resulted in Baring Vostok's partners purchasing ownership of its management company. At the same time, the firm's affiliates in Asia, India and Latin America completed similar buyouts of their respective firms. These companies subsequently continued their affiliation although each firm retained full ownership of their respective businesses. Following the buyout of the management company, in 2005, the Baring Vostok Private Equity Fund III was raised with total committed capital of $413 million.
In February 2007, the firm completed fundraising for its fourth private equity fund. Baring Vostok raised $1.1 billion of investor commitments for its main fund Baring Vostok Private Equity Fund IV. Together with a parallel fund, Baring Vostok Fund IV Supplemental Fund, which raised over $300 million of capital, Baring Vostok's fourth fund was at the time the largest private equity fund in Eastern Europe.
In mid-2011, Baring Vostok announced it would begin raising capital for its fifth private equity fund, targeting a similar fund size as the firm's last fund in 2007.
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
and the Commonwealth of Independent States
Commonwealth of Independent States
The Commonwealth of Independent States is a regional organization whose participating countries are former Soviet Republics, formed during the breakup of the Soviet Union....
. The firm, which is the largest private equity firm in Russia, invests across a broad range of industries including oil and gas, consumer products, media and technology, telecommunications and financial services.
From it founding in 1994 through 2004, the firm was a subsidiary of Baring Private Equity International (BPEP International) which was an affiliate of Barings Bank In addition to Baring Vostok, the affiliates of BPEP International include Baring Private Equity Asia as well as Baring Private Equity Partners India, founded in 1984. BPEP International's Latin America affiliate is known as GP Investments
GP Investments
GP Investments is a private equity firm focused on emerging markets leveraged buyout and growth capital investments in Latin America...
, a leading private equity firm in Brazil. Collectively, the firms represent over $7.1 billion in capital commitments as of the end of 2011.
With offices in Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
, the firm has raised over $2.1 billion across four investment funds. The firm’s name referenes the Vostok spacecraft which was the first manned spacecraft operated by Russian cosmonaut Yuri Gagarin
Yuri Gagarin
Yuri Alekseyevich Gagarin was a Soviet pilot and cosmonaut. He was the first human to journey into outer space, when his Vostok spacecraft completed an orbit of the Earth on April 12, 1961....
.
Investments
Since inception, Baring Vostok has invested over $1.2 billion in more than 50 companies.Baring Vostok is best known for its early stage investment in Russian search engine, Yandex
Yandex
Yandex is a Russian IT company which operates the largest search engine in Russia and develops a number of Internet-based services and products. Yandex is ranked as 5-th world largest search engine...
, acquiring a 35.7% stake in the business in 2000. At the time of the Yandex IPO, Baring Vostok is estimated to have generated value of approximately $4 billion, representing a return on its original $5 million investment in excess of 800x. Among Baring Vostok's most other investments are Volga Gas, Borjomi Mineral Water
Borjomi (water)
Borjomi is a brand of naturally carbonated mineral water from springs in the Borjomi Gorge of central Georgia. The artesian springs in the valley are fed by water that filters from glaciers covering the peaks of the Bakuriani mountains at altitudes of up to...
, Ozon.ru
Ozon.ru
Ozon is one of the first online shops in Russia, established in 1998 by the Russian software house Reksoft. Its main goods are books, electronics, music, and movies. As of 2005, it is the largest online retailer in Russia...
, Burren Energy
Burren Energy
Burren Energy plc was a British oil exploration and production company founded in 1994 by Finian O’Sullivan who served as its CEO and, latterly, president...
, CTC Media
CTC Media
CTC Media, Incorporated is a leading media company in Russia. It owns and operates two national free–to–air TV networks in Russia . It also operates two channels in the CIS - Channel 31 in Kazakhstan and a TV company in Uzbekistan...
, Nezabudka and Golden Telecom
Golden Telecom
Golden Telecom is a trademark of EDN Sovintel, LLC , of Russia.In 2008, Sovintel was acquired by Vimpelcom .-Golden Telecom Inc.:Golden Telecom Inc. is an offshore company to support operations of Golden Telecom.-History:...
.
The firm has been named Russian Private Equity Firm of the Year by Private Equity International.
History
Baring Vostok Capital Partners origins date back to 1994 with the formation of the First NIS Regional Fund. The fund was a joint venture between Baring Asset ManagementBarings Bank
Barings Bank was the oldest merchant bank in London until its collapse in 1995 after one of the bank's employees, Nick Leeson, lost £827 million due to speculative investing, primarily in futures contracts, at the bank's Singapore office.-History:-1762–1890:Barings Bank was founded in 1762 as the...
and Sovlink, a Russian-American merchant bank. Baring Bank’s ties to Russia traced back several centuries and Barings was the primary international bank for the Russian czars.
The First NIS Regional Fund was originally managed by a team of investment professionals from Barings and Sovlink including current Baring Vostok senior partner Michael Calvey. With $160 million of investor commitments, the fund ultimately returned $620 million to investors over the life of the fund. In 1997, Baring Vostok Capital Partners, became an affiliate of Baring’s BPEP International. Following the collapse of Barings Bank, the ownership of BPEP International was assumed by the Dutch bank ING Group
ING Group
The ING Group is a global financial institution offering retail banking, direct banking, commercial banking, investment banking, asset management, and insurance services. ING is the Dutch member of the Inter-Alpha Group of Banks, a cooperative consortium of 11 prominent European banks...
.
In 2001, the firm completed fundraising for the Baring Vostok Private Equity Fund. With $205 million of investor commitments, Baring Vostok’s was the first foreign private equity fund raised in the aftermath of the 1998 Russian financial crisis.
In May 2004, BPEP International completed a management buyout
Management buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.- Overview :Management buyouts are similar in all major legal aspects to any other acquisition of a company...
from ING Group
ING Group
The ING Group is a global financial institution offering retail banking, direct banking, commercial banking, investment banking, asset management, and insurance services. ING is the Dutch member of the Inter-Alpha Group of Banks, a cooperative consortium of 11 prominent European banks...
, which resulted in Baring Vostok's partners purchasing ownership of its management company. At the same time, the firm's affiliates in Asia, India and Latin America completed similar buyouts of their respective firms. These companies subsequently continued their affiliation although each firm retained full ownership of their respective businesses. Following the buyout of the management company, in 2005, the Baring Vostok Private Equity Fund III was raised with total committed capital of $413 million.
In February 2007, the firm completed fundraising for its fourth private equity fund. Baring Vostok raised $1.1 billion of investor commitments for its main fund Baring Vostok Private Equity Fund IV. Together with a parallel fund, Baring Vostok Fund IV Supplemental Fund, which raised over $300 million of capital, Baring Vostok's fourth fund was at the time the largest private equity fund in Eastern Europe.
In mid-2011, Baring Vostok announced it would begin raising capital for its fifth private equity fund, targeting a similar fund size as the firm's last fund in 2007.
External links
- Baring Vostok Capital Partners (company website)