The Russia-China Investment Fund (RCIF) is a private equity fund that aims to generate competitive returns by investing in projects that advance bilateral economic cooperation between Russia and China.
The Fund was established in June 2012 by two government-backed investment vehicles -- the Russian Direct Investment Fund and China Investment Corporation (CIC).
The fund received 2 billion US dollars in commitments from RDIF and CIC in equal share, with up to an additional 2 billion US dollars expected to be raised from international institutional investors.
RCIF focuses on projects that foster economic cooperation between the two nations and will invest at least 70 percent of its capital in Russia and CIS countries and up to 30 percent in China.
The Fund’s management team consists of top investment professionals with deep knowledge of the Russian and Chinese markets.
Anchor Investors
Russian Direct Investment Fund (RDIF)
Russian Direct Investment Fund is a $10 billion fund established to make equity investments primarily in the Russian economy.
RDIF was created in 2011 under the leadership of the President and Prime Minister of Russia to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia.
China Investment Corporation (CIC)
China Investment Corporation is a wholly state-owned company with a mandate to invest and manage overseas assets. CIC was established as a vehicle to diversify China’s foreign exchange holdings and seek maximum returns for its shareholder within acceptable risk tolerance. CIC holds the investment principles and approaches of independent decision-making grounded in market conditions.
Why Invest With RCIF
The Russia-China Investment Fund seeks to generate competitive returns by investing in projects that advance economic cooperation between Russia and China.
RCIF will invest at least 70 percent of its capital in Russia and CIS countries and up to 30 percent in China.
RCIF employs a rigorous investment process in accordance with the highest international standards of due diligence and fiscal responsibility. The Fund is managed by experienced investment professionals incentivized in accordance with the established practice of the private equity industry.
The backing of the Russian and Chinese governments provides a level of security that cannot be matched by other investment vehicles. Investors in RCIF will gain unparalleled access to the extraordinary opportunities produced by increased cooperation between two of the world’s most powerful economies.
Unique angle and positioning
Russia and China are among the world’s largest and fastest growing economies with unique fundamentals and strengthening cross-border investment
The only PE fund dedicated to investment opportunities across Russia and China backed by their respective governments
The largest Chinese government-funded PE fund that can also invest directly in China
Strong ability to source deals and add value
Unparalleled advantage for sourcing proprietary deals by leveraging extensive business relationships and strong government support
Ability to leverage sponsors’ support to engage valuable resources for sourcing transactions, deal execution, and adding value to portfolio companies post-investment
Experienced investment team
Experienced senior investment team in Moscow and Beijing with established local and global connections
Extensive experience in operating international companies and domestic firms, private equity investment and management consulting
Government Support
RDIF and CIC are the most prominent government-backed investment organizations in their respective countries.
Priority Sectors
Above all, RCIF seeks to invest in projects that advance bilateral economic cooperation between Russia and China. Within this context, the Fund has identified five key focus areas in which we see considerable potential for generating returns. RCIF may invest in other sectors in order to provide investors with maximum exposure to growth.
Infrastructure: Demand for infrastructure, transportation and logistics related to trade flows between Russia and China is growing. We also see economically attractive opportunities in the power and utilities sector, with a particular focus on Russia’s Far East and Russia-China power exports.
Food and Agriculture: Demand for agricultural products is growing as populations increase and the middle class gains more purchasing power. In particular, there is strong potential for investment in the fertilizers sector.
Consumer Goods and Services: RCIF is considering potential investments to expand leading consumer and services businesses in both countries. It is also evaluating possible transactions in the field of Russia-China travel and tourism.
Natural Resources: RCIF sees considerable potential for investment in high value-added development and the processing of natural resources. Through its investments, the Fund will facilitate the exchange of new technologies, the development of downstream processing and the exchange of the best operational practices.
Investment themes
RCIF will target opportunities created by the rapid development of economic cooperation, fast growing trade, and the increasing purchasing power of the middle class in Russia and China. This approach will allow the fund to generate strong risk adjusted return for investors.
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