News 10.07.2006
Great Circle Fund completes first investment in the Russian transportation sector Moscow, July 10, 2006 – Alfa Capital Partners announces Great Circle Fund’s investment in Moscow headquartered, Russian Logistic Service ("RLS"). RLS provides domestic and international freight forwarding, warehousing and transportation services to a roster of multi-national and local corporations. The Great Circle Fund LP is a private equity fund investing in the transportation sector in emerging markets. The Fund is backed by the United States Overseas Private Investment Corporation. Alfa Capital Partners ("ACP") is the Regional Manager of the Fund and Great Circle Capital is the Investment Manager.
"RLS has established a strong market position and is poised to become a leading logistics service provider for Russia’s rapidly growing FMCG market," said Richard Sobel, CEO of Alfa Capital Partners. "Retail sales, a main driver of the transport and logistics industry, are forecasted to grow 15-18% annually between 2005 and 2008, with demand for professional logistics services expected to grow at a significantly faster rate."
"Logistics is a dynamic sector in Russia that we have been tracking aggressively. RLS is an exciting investment for us – one of the few logistics providers operating on a nationwide scale in Russia, with a scalable business model, exceptional management and an impressive customer roster including some of the leading multi-national FMCG suppliers and retailers," said Paul Rapello, a Partner with Great Circle Capital.
Proceeds of US$20 million from the Great Circle investment will be used to expand RLS’s core transportation business as well as to develop a national network of RLS operated Class A warehouses.
"We are excited to partner with Great Circle as we continue to aggressively expand our core business," said Kirill Vlasov, founder and President of RLS. "New capital along with their financial and strategic expertise will enable us to take the company to a new level of logistics services and geographic coverage, to better serve our customers." Kirill Vlasov is the only other shareholder in the company.
________________________________
Alfa Capital Partners, a Moscow-based private equity investment firm, manages three funds with an aggregate of US$360 million from international institutional and private investors and from Alfa Group. Alfa Capital Partners seeks to invest in growth opportunities in Russia, Ukraine and CIS with two of the funds dedicated to the infrastructure and real estate sectors.
Alfa Capital Partners is an affiliate of Alfa Group, one of Russia’s largest financial industrial groups. Please visit our website: www.alfacp.ru
The Great Circle Fund LP is a US$180 million emerging markets private equity fund seeking leveraged buyout and expansion capital opportunities within the global transportation network. The Fund’s primary geographic focus is the countries of the former Soviet Union, Southeast Europe and Turkey. The Fund is sponsored by the United States Overseas Private Investment Corporation and managed by Great Circle Capital LLC, based in Stamford, Connecticut, USA. Moscow-based Alfa Capital Partners is the Regional Manager of the Fund. Probel Capital Management, based in Brussels, is an Investment Advisor to the Investment Manager of the Fund.
Great Circle Capital LLC and affiliates based in Stamford, Connecticut act as the General Partner and Investment Manager of the Fund. Please visit our website: www.greatcirclecapital.com
Russian Logistic Service was founded in 1996 by Kirill Vlasov. RLS owns a network of regional logistics companies in 20 cities in Russia and Kazakhstan, headquarter in Moscow, provides a full range of logistics services in the Russian Federation. Services include freight forwarding by truck, rail, air, and sea, consolidated cargo services, as well as storage and handling of cargo at eleven company-operated warehouses located in Moscow, St. Petersburg, Novosibirsk, Samara, Ekaterinburg, Krasnodar, Vladivostok and Khabarovsk. Please visit our website: www.rls.ru |
