Fund

The Fund has been established to make significant returns by investments in property-related opportunities within Russia and the other CIS countries.

Background to the Fund

After more than 30 years of combined cross-section experience in Russia, the RAF’s principals encounter many opportunities to generate solid investor returns and benefit from the rapidly-evolving economies in this and other CIS countries.

The Opportunity

The CIS countries have witnessed significant economic growth since 2000, with average annual GDP growth of about 7%. Underlying this success is very prudent macroeconomic management.

In addition to expected market growth the Fund will create premium value through unique deal generation, asset development and investment exit capabilities.

RAF’s objective is to realise premium capital appreciation from investments in property-related opportunities in Russia and other CIS countries. It targets an IRR in excess of 25 percent following repayment of all invested capital and a CAGR hurdle rate of 7%.

The Fund is an active investor, making a limited number of Portfolio Investments where it can gain significant influence and add value through asset development. Targeted asset classes will mainly be in the residential segment, given the high demand for improved residential accommodation in the CIS.

Fund structure

There were dual investment mechanisms in the Fund:

Via the Investor Consortium, a Swedish limited liability company,
Real Asset Fund Investors AB (RAFI):
- Aimed at "smaller" investors and/or investors for whom liquidity is important
- Minimum up-front investment of SEK500,000
- Shares traded on grey-market facilitated by Ohman

Via direct investment in the Fund:
- minimum commitment of SEK30 million
- investments drawn down as needed for investment or operating expenses

All current investors invested via the Investor Consortium.