is the largest independentprivate equity firmfocused on investments inRussiaand theCommonwealth of Independent States. The Baring Vostok Private Equity Funds invest across a broad range of industries including oil and gas, consumer products, media and technology, telecommunications and financial services.
The Investment Advisor of the Funds, Baring Vostok Capital Partners (Guernsey) several times since 2005 has been voted Russian Private Equity Firm of the Year by the readers of Private Equity International and Private Equity Online. The sub-advisor of BVCP has a branch office in Moscow with a team of 40 experienced investment professionals.2
From its founding in 1994 through 2004, the firm was a subsidiary ofBaring Private Equity International(BPEP International) which was an affiliate ofBarings Bank. In addition to Baring Vostok, the affiliates of BPEP International include Baring Private Equity Asia3as well as Baring Private Equity Partners India, founded in 1984.4BPEP Internationals Latin America affiliate is known asGP Investments, a leading private equity firm in Brazil. Collectively, the firms represent over $12 billion in capital commitments as of the end of 2014.
With offices inMoscow, the firm has raised over $3.7 billion across fiveinvestment funds. The firms name vostok is the Russian word for east. Additionally, theVostok spacecraftwas the first manned spacecraft, operated by Russian cosmonautYuri Gagarin.
The firms founderMichael Calveyand five colleagues were arrested in February 2019 for allegedly defrauding Russian businessman Artem Avetisyan who is an associate of Putin and the FSB. Calvey maintains the charges are baseless, supported by a BBC investigation, and says the real reason for the arrest is Calvey was suing Avetisyan in a separate case in London, and winning, and Avetisyan used his connections with the FSB to have Calvey arrested in Russia. Avetisyan stands to gain 10s of millions if Calvey is convicted, and Calvey faces 10 years in the notoriousMatrosskaya TishinawhereSergei Magnitskymysteriously died.5
Since inception, Baring Vostok has invested over $2.4 billion in 67 companies.2
Baring Vostok founded byMichael Calveyis best known for its early stage investment in Russian search engine,Yandex, acquiring a 35.7% stake in the business in 2000.67At 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.89Among Baring Vostoks other investments are Volga Gas,10Borjomi Mineral WaterOzon.ruBurren EnergyCTC Media, Centre of Financial Technologies, Enforta, ER-Telecom, 1C, Burren Energy, Novomet, Kaspi Bank, Orient Express Bank, Europlan, Novomet, Karo, Avito.ru, Tinkoff.ru, EMC andGolden Telecom,6,Verticali.
Baring Vostok Capital Partners origins date back to 1994 with the formation of the First NIS Regional Fund.11The fund was a joint venture betweenBaring Asset Managementand Sovlink, a Russian-American merchant bank. Baring Banks 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 Barings BPEP International. Following the collapse of Barings Bank, the ownership of BPEP International was assumed by the Dutch bankING Group.
In 2001, the firm completed fundraising for the Baring Vostok Private Equity Fund. With $205 million of investor commitments, Baring Vostoks was the first foreign private equity fund raised in the aftermath of the1998 Russian financial crisis.12
In May 2004, BPEP International completed amanagement buyoutfromING Group, which resulted in Baring Vostoks partners purchasing ownership of its management company. At the same time, the firms 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.13Following the buyout of the management company, in 2005, the Baring Vostok Private Equity Fund III was raised with total committed capital of $413 million.14
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 Vostoks fourth fund was at the time the largest private equity fund in Eastern Europe.15
In October 2012, the Baring Vostok Private Equity Fund LP V was raised with total committed capital of $1.15 billion, which was, at the time, the largest amount raised for a deal of this kind in Russia.16Baring Vostok Fund V Supplemental Fund raised $350 million.17
April 26, 2012, at theWayback Machine. Private Equity Russia, 2010
November 27, 2011, at theWayback Machine(company website)
Amy Knight (March 4, 2019).The Price of Doing Business in Russia: Prison.
2012-04-26 at theWayback Machine. AltAssets, May 3, 2011
Yandex Is Set for $1.3 Billion Stock Offering. New York Times, May 23, 2011
2011-11-05 at theWayback Machine. PrivCap, May 24, 2011
Volga Gas plans to raise about 100 mln usd in London IPO. Forbes, April 10, 2007
Baring Vostok scales new private equity heights. Euromoney magazine, May 2007
2012-04-26 at theWayback Machine. AltAssets, Jan 24, 2002
Baring Private Equity Group(organization website)
2012-04-26 at theWayback Machine. AltAssets, Feb 25, 2005
Baring Vostock set to launch record fund in bear market. Dow Jones Financial News, July 18, 2011
Chassany, Anne-Sylvaine.Baring Vostok Gets $1.5 Billion for Russias Largest Fund,
Baring Vostok Capital Partners(company website)
Private equityandventure capitalinvestment firms
History of private equity and venture capital
Merchant banking private equity groups(current and prior)
List of investment banking private equity groups
This page was last edited on 3 June 2019, at 08:26