Baring Vostok restructures ‘Amazon of Russia’ fund – exclusive

UBS has been hired to run a process which will move the fund's sole remaining asset into a new vehicle with new terms, Secondaries Investor has learned.

Baring Vostok Capital Partners is in the process of restructuring its 2000-vintage fund, the sole remaining asset of which is Russia’s leading e-commerce platform, Secondaries Investor has learned.

The Russian private equity firm has hired UBS to run a process to offer liquidity to limited partners in its $205 million Baring Vostok Private Equity Fund, according to three sources familiar with the matter. The process began in the first quarter.

It is understood the sole remaining asset held in the fund is, the largest online market in Russia. The e-commerce platform, often referred to as the ‘Amazon of Russia’, has more than 700,000 unique visitors a day and offers over 3.5 million items across 15 different categories, according to Baring Vostok’s website.

The sole asset will be moved into a new vehicle with new terms. Buyers and LPs wishing to exit the fund have been identified, according to one of the sources.

“There’s future growth potential for [] and it’s going to take some time, so some people may not want to stick around for the ride,” one of the sources said.

The Moscow-headquartered private equity firm holds a large minority stake, having invested $3 million in 2000 and re-invested an unknown amount in 2007.

Baring Vostok Private Equity Fund focused on investments in central and eastern Europe across a range of sectors including energy, retail and telecommuncations, according to PEI Research and Analytics. Limited partners in the fund include Canada’s CDPQ and European Bank for Reconstruction & Development (EBRD), which committed €65 million.

The firm has not raised a fund since its 2012-vintage Baring Vostok Private Equity Fund V Supplemental Fund, a $359 million buyout vehicle.

Baring Vostok did not return a request for comment. UBS declined to comment.