VTB launches Russia-CIS debt fund

The vehicle will be of particular interest to emerging market investors, says VTB chief executive Vladimir Potapov. 

VTB Capital Investment Management has launched a debt fund targeting fixed income instruments in Russia and the Commonwealth of Independent States, the asset manager announced in a statement Tuesday.

The fund will launch with $40 million in capital plus an additional $15 million in soft commitments pledged by year end, according to a statement.

Luxembourg-domiciled VTB Capital IM Russia & CIS Debt Fund will invest in high yield and investment grade fixed income securities issued by governments, municipalities and corporations based in Russia or CIS countries, according to a statement. The investments may include Eurobonds and convertible bonds.

“Russia and CIS debt markets offer a combination of attractive carry, long-term disinflationary trends and continuously arising opportunities to capture excess returns by applying credit expertise,” said VTB Capital Investment Management chief executive officer Vladimir Potapov in the statement.  “We believe the Fund will be of particular interest to emerging market investors who want to capture the upside of this region, as well as to global investors who want to diversify their portfolio.”

VTB is targeting an 8 to 10 percent annual return for the fund, which is being marketed to family offices, pension funds, insurance companies and private banks, Potapov told Private Debt Investor in an email. 

VTB’s Investment Management arm includes its portfolio management and alternative investment businesses. VTB Investment Management had more than $2 billion in assets under management at press time, according to its website.