London-based asset management group I2BF has been awarded the mandate to control a new USD100m nanotech fund, alongside Russian bank VTB.
The appointment has been made by the fund’s primary investors, Russian nanotech giant Rosnano and Kazyna Capital Management, both of which have already committed USD25m.
The remaining investment – between USD50m and USD100m – will be raised by I2BF and VTB.
The fund’s lifespan will be ten years and it aims to provide investors with exposure to projects focused on bringing the benefits of nanotech to sectors which contribute to the overall economies of both Kazakhstan and Russia.
The objectives of the fund also include helping facilitate the transfer of nanotechnology between Kazakhstan and Russia, contributing to the countries’ overall diplomatic and business relations and ultimately stimulating the growth and development of the nanotech investment space.
Nanotechnology is applied within the cleantech, alternative and sustainable energy and energy efficiency sectors which I2BF has particular expertise in. It is expected that a large portion of the fund’s portfolio will be technically classified as cleantech.
Abai Alpamisov, chairman of Kazyna Capital Management, says: “The ability of the nanotech fund to attract interest from highly-regarded businesses such as VTB Capital and I2BF will hopefully encourage other investors to come on board. The extensive and varying expertise that these parties bring to the deal means we are confident that the fund will reach its closing investment target of USD100m.”
I2BF founder Ilya Golubovich says: “The fund’s joint-control arrangement is unique within venture capital and we believe that our partnership with VTB Capital will be successful. The I2BF team already has vast experience of the Western venture capital market, having operated there since inception, and successfully identifying and sourcing exciting investment opportunities. We are ready to contribute our global expertise to Russia, which is rich environment for developing technologies utilised in various markets across the world.”
