AGC Part Of Russia’s Biggest Middle East Investment

AGC Equity Partners, as part of what is being called the largest “Middle East investment in Russia”, has acquired a USD 175 mln stake in Enel OGK-5, an Italian-run Russian power generation company, from Inter RAO UES, another energy company. AGC has made the investment as part of an alliance that also consists of the Russian Direct Investment Fund (or RDIF, which was set up as a sovereign investment fund to focus on PE investment in Russia), the Rusnergo Fund from Xenon Capital Partners and Macquarie Renaissance Infrastructure. The consortium has put in funds equivalent to a 26.43 percent block in the stake, with Xenon and AGC injecting USD 175 mln each, and RDIF and Macquarie injecting USD 137.5 mln each. Enel OGK-5 is said to be a high-quality, high-growth asset whose stake was bought in a “landmark transaction” that allowed acquisition at an extremely attractive price.