VTB Capital Private Equity and Special Situations closed the acquisition of a USD 30mn minority stake in Brunswick Rail, the Russian freight car leasing company.
VTB Capital is one of the most active private equity market participants in Russia and the CIS. To date, VTB Capital Private Equity and Special Situations has invested over USD 500mn in a number of leading Russian companies in joint projects with international private equity funds and operational partners. The Private Equity and Special Situations business model envisions investment on arm’s length terms in leading companies from various sectors.
The VTB Capital Private Equity and Special Situations team was named #2 Private Equity Firm in Russia 2009 by Private Equity International.
Brunswick Rail is Russia’s leading freight railcar provider. The funds will be invested primarily in building up the company’s freight railcar fleet, which currently stands at 12,500. Brunswick Rail estimates that the Russian rail market will require more than 700,000 new railcars in the next 10 years to replace retired fleet and ensure transportation growth.
Yuri Soloviev, President at VTB Capital, said: “We see growing transportation needs from major Russian industrial companies. With the outlook on Russian railways development in mind, we see serious value growth potential in this asset”.
Vladimir Lelekov, CEO and Managing Partnerat Brunswick Rail, noted: "We are happy to see VTB Capital, a Russian investment market leader, as one of our shareholders. With VTB Capital funding the company, we can proceed with our investment program and speed up the development pace of Brunswick Rail”.
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