BlackRock makes second investment in Russia with RDIF

BlackRock Investment Management has made another investment together with the Russian Direct Investment Fund (RDIF), this time in a medical company MD Medical Group.

RDIF received an allocation of $50m in the medical firm’s IPO, with BlackRock joining as a co-investor. The move follows two weeks after BlackRock bought a stake in the MICEX-RTS stock exchange, also together with the RDIF.

The new investment was made in conjunction with Siguler Guff’s Russia Partners, a Russian private equity fund, and several other qualified institutional investors.

These moves follow the formation of a consortium between RDIF and three leading global investment firms in June.

This cooperation brought together BlackRock Investment Management, Templeton Asset Management and the Goldman Sachs European Special Situations Group, with the aim to help Russian companies through the pre-IPO process.

Together with the RDIF they plan to invest in Russian companies with an annual turnover of $500m or more that plan to place their equity on the Russian stock exchange in the next 6-18 months.

The latest firm to gain financing from the group operates the Mother and Child chain of clinics and is the leading and fastest-growing provider of private women’s and children’s healthcare in Russia.

RDIF plans to use its network of relationships with regional governments to support the development of this business across Russia.

Kirill Dmitriev, chief executive of RDIF, said: “We believe in Russia’s private healthcare market because it is an important growing industry that performs equally well in good and challenging markets. We like MD Medical Group because of its strong leadership, clear growth strategy and proven ability to train up excellent medical professionals.”

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