OREANDA-NEWS. October 22, 2009. The company’s initial capital for investment will be US1 billion, of which each party will pledge US500 million. The company will make investments to provide expansion capital to dynamically growing businesses, and equity to strengthen balance sheets of portfolio companies. The company will also aim to raise a significant amount of new debt for refinancing and optimization of capital structure of its investees. Investments will be made in core sectors of the economy including consumer products, manufacturing, and services, reported the press-centre of Interros.

In connection with the creation of the joint company, President of Interros Holding, Vladimir Potanin stated: “Cooperation with OEP is in line with our strategy of attracting foreign partners to investments in the Russian economy. In addition to significant financial investments, we are also hoping to benefit from synergies which will arise from a combination of the successful experience of Interros’ investment activity in Russia and the high credentials and reputation of our partners along with their skills in managing and developing portfolio companies.”

Richard Cashin, Managing Partner of One Equity Partners stated: “We are delighted to be partnering with Interros on this venture, and believe that by combining local and foreign capital and expertise, we will help to strengthen Russia’s economic base and provide a successful model for investing private institutional capital in Russia and other emerging markets.”

Michael Gregory O’Hara, Senior Partner of One Equity Partners stated: “This is an exciting opportunity to invest in Russia alongside an experienced and successful partner. We look forward to leveraging Interros’ local knowledge to implement our investment strategy here. OEP focuses on generating returns by improving and strengthening the portfolio companies in which we invest. Through our joint investment company we will provide equity that will position our investee companies for growth: by providing growth capital, by improving their balance sheets and relieving the burden of excess leverage, through the management expertise that both OEP and Interros can bring, and by enabling them to access additional debt and equity capital to fund further growth, through our relationship with JPMorgan Chase, one of the world’s leading financial institutions.”