Foundation Fund

History

2021

Fund launch

On December 21, 2021, the launch of the operational activities of the Fund for Advanced Industrial and Infrastructure Technology Funds within the framework of public-private partnership was announced. The RDIF on behalf of the state contributed 10 billion rubles to the capital of the new fund, the same amount of funds will contribute to the business.

Business investments in each project will be at least state investments. Decisions on investment are made jointly by the state and private business. It is noted that the experience and expertise of RDIF partners will be attracted to assist portfolio companies of the Fund of Funds in entering international markets and attracting foreign investment.

RDIF launched Advanced Technology Funds Fund and contributed 10 billion rubles to it

According to the RDIF press service, the Fund of Funds will invest in promising Russian companies with a confirmed business model and ready for scaling, as well as subsidiary sub-funds managed by the RDIF.

At the same time, it was announced the creation of the Energy and Ecology sub-fund, aimed at investing in Russian companies in the field of energy, renewable energy and ecology, and developing relevant and promising technologies, products and services.

According to Kirill Dmitriev, CEO of the RDIF, the priority investment areas of the Fund are energy and ecology, artificial intelligence, medicine and genetics, and industry. In these areas, it is possible to create appropriate sub-funds, he said.

The synergy of the state and private business creates the basis for attracting capital and better expertise to support the entry of promising Russian companies into global markets. The activities of the Fund of Funds will make it possible to form a portfolio of high-quality investment projects, the first 10 of them are already being studied, "Dmitriev said[1]

Raising capital of 20 billion rubles. from the state and business

The state and business will invest 10 billion rubles each in the Fund of Funds, from which startups will receive funds. The head of the Russian Direct Investment Fund (RDIF) spoke about the total capital of 20 billion rubles, which will be formed by companies and the state on a parity basis Kirill Dmitriyev at a meeting with President Vladimir Putin on April 2, 2021.

Ten leading entrepreneurs from the Russian Union of Industrialists and Entrepreneurs as part of your order for the Fund of Funds will invest with us in high-tech companies in Russia. This is an important step, because it will combine the efforts of the RDIF also with all members of the RSPP, not only investors, and will allow financing many more high-tech companies, "Dmitriev said (quoted by Interfax).

Head of the Russian Direct Investment Fund Kirill Dmitriyev

He noted that business is satisfied with the proposed formula, which, according to Putin, has become the subject of a dispute in the government.

They are very pleased because they invest together with the RDIF, while everyone invests a billion rubles of their money, the state also invests 10 billion rubles in this fund, and the RDIF will also invest here, "said the head of the RDIF.

According to Vedomosti sources, the creation of the Fund of Funds was actually the result of the implementation of the so-called list of Andrei Belousova. In August 2018, Belousov (then presidential aide), in a letter to President Vladimir Putin, proposed to seize 513.66 billion rubles of excess profits from 14 metallurgical, chemical and petrochemical companies, which they received as a result of favorable changes in external market conditions. Companies (among which there are those that eventually signed up for investments in the Fund of Funds), of course, were against it. To reach a compromise and find at least an acceptable form for them to withdraw funds, according to the sources of the publication, was entrusted to the head of the Russian Union of Industrialists and Entrepreneurs Alexander Shokhin.^[2]

Offer of contribution in the amount of 1 billion rubles for membership in the fund

As it became known at the end of January 2021, to participate in the private-state Fund of funds for promising industrial and infrastructure technologies, companies will have to contribute 1 billion rubles to its budget. The launch of the fund is scheduled for February.

The companies that signed the agreements on participation in the fund included:

• "AEON" by Roman Trotsenko;
• ESNGrigoria Berezkina Group;
• Interros by Vladimir Potanin;
• PJSC Polyus;
• "Renova" by Viktor Vekselberg;
• PJSC "";PIPE METALLURGIC COMPANY
• "Sinara" by Dmitry Pumpyansky;
• OHK Uralchem Dmitry Mazepin;
• "Uralkali";
• PJSC PhosAgro.

First Deputy Prime Minister Andrei Belousov

According to TASS, citing the secretariat of First Deputy Prime Minister Andrei Belousov, an investment partnership agreement was chosen as the model for the fund, in which the state and private investors will act as depositor comrades. The Russian Direct Investment Fund serves as a managing friend under an investment partnership agreement.

According to Forbes sources, at meetings in the government, the amount of the contribution of businessmen participating in the Fund of Funds in 1 billion rubles was discussed. One of the informants of the publication says that by January 26, 2021, the amount of deductions has not been approved.

A Forbes source said that the total budget of the fund will be 15-20 billion rubles, "and it was said that it is better than 20 billion rubles." Another source tells the publication that the budget will be 16-20 billion rubles.

The list of projects of the Fund of Funds is formed by its participants on the basis of accumulated expertise in various sectors of the economy. In addition, the list of projects may include the largest and most promising projects of the National Technology Initiative.

The formation of the pipeline of projects of the Fund of Funds will now become a key work, it is necessary to force it, "said Andrei Belousov.[3]

2020: The Government of the Russian Federation creates a fund for investment in startups

On October 21, 2020, it became known about the creation of a venture fund of funds in Russia, for which 14 billion rubles were allocated. This was told by First Deputy Prime Minister Andrei Belousov at a meeting of Vladimir Putin with members of the board of the Russian Union of Industrialists and Entrepreneurs.

About the Fund of Funds. It is assumed that the capital of this fund will be created 50 by 50. Moreover, the government first finances it, and 10 billion rubles are already budgeted for this year, another 4 [billion rubles] for next year, and then private business will be invested, he said (quote from TASS).

According to Belousov, the selection of funds and the selection of projects will be carried out jointly - the question was never raised that "the government is pulling a blanket on itself." By October 2020, the project is at the level of finalizing details and forming teams, the First Deputy Prime Minister said.

The Government of the Russian Federation creates a Fund of Funds

As Putin noted, the right to choose investment projects for the Fund of Funds should be assigned to business, since it is he who bears the main financial risks.

If a business risks, if they invested money in this Fund of Funds, and the state has minimal risks, and who should decide on these investments? It is necessary to grant this right to business itself, "the head of state is convinced.

Vladimir Putin discussed the idea of ​ ​ creating a Fund of Funds in March 2020 at a meeting with investors, which was attended by including Yandex co-founder Arkady Volozh and investor Leonid Boguslavsky. At the meeting, the founder of Almaz Capital Partners, Alexander Galitsky, proposed that state corporations, pension funds, insurance companies create funds, and the funds of these funds will have to invest in specialized venture funds.

Andrei Belousov said earlier in 2020 that the Russian government would support the RSPP initiative to create a private venture fund by analogy with the Russian Venture Company (RVC).^[4]

Notes