Alfa-Bank and Alfa Capital Management Company are launching a joint product — a strategy for qualified investors "Investing with Alfa: Special Situations Fund". The instrument, which includes a closed-end mutual investment fund (CEIF), is focused on investments in Russian assets that are in special situations.

The purpose of the fund is to invest in Russian assets from the real sector of the economy, which can be purchased at a discount to their market value (through an investment partnership, by entering into an appropriate agreement). The focus is on shareholdings, rights of claim, debt instruments, as well as other types of property rights and assets. The main task of the fund is to preserve enterprises that are important for the economy. To do this, it is planned to use the opportunities arising from corporate conflicts, debt restructuring, inheritance cases and other difficult situations, with the subsequent settlement of such cases and exit from investments with potential profits. To search, select and manage the relevant special situations in which the fund plans to invest, a manager is appointed - A1 company, a leading expert in investments in special situations.

In addition, it is planned to pay attention to increasing transparency, as well as improving the quality of operational and corporate governance in the selected companies. The investment strategy assumes the active participation of the management team in the transformation of business models and improving the operational stability of portfolio companies.

Parameters of the planned fund

The fund is created for a period of up to 7 years and plans to raise capital of up to 30 billion rubles. The portfolio is expected to consist of 6-10 companies (no more than 20). The investment strategy is focused mainly on Russian assets, while up to 20% of companies from the CIS countries are allowed to be included in the portfolio. Investments will be available only to qualified investors.

A1 is responsible for the search, selection and implementation of investment situations. Alfa Capital manages the fund's assets. Alfa-Bank will act as an anchor investor in the fund and provide work with clients. In addition, the bank co-invests on an equal basis with individuals. Only wealthy clients of Alfa will have access to this strategy.

Alexander Fain, CEO of A1: "Our team of experts in special situation investments has been dealing with distress assets for more than 30 years. During this time, we have actually saved hundreds of companies and helped develop entire sectors of the economy. We know how to turn a complex asset or trade into an investment opportunity. The created fund will allow us to enter larger assets, and investors, in turn, will have access to an exclusive product with a unique combination of risk and financial opportunities. In addition, the fund's resources will make it possible to buy out assets, including large ones, from those owners who are tired of managing the business, do not want to inherit the asset and are looking for investors."