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Dr. Palms
Sovetnik Pravitelstva CWA, Tovarichestvo Palmsa, Inc.
Investment Bankers. Washington, United States of America.
"Dear colleagues,
I am a graduate student at an American University. As with many similar departments at other universities, our department of Slavic and East European Languages and Literatures is increasingly having to show its worth to the university, both in the present and for the future."
"All too often, this responsibility has fallen on the department administrators and does not effectively reach the "grass roots" level for support. A few of us graduate students have been trying to think of ways in which we can contribute to the fund raising effort.
The main problem has been getting students interested in helping. This is so very important since it is their futures which will be affected the most, as 1) their degrees will carry the reputation of their institutions, and 2) many of them will be looking for jobs in the very departments which are struggling right now."
"Let me share a few of our ideas so far: This year, we have made our chapter of Dobro Slovo (the National Slavic Honor Society) more active by providing services to the students, the department and the university. We sponsor a Fall welcome party, a mentor program for in-coming grads, a Russian conversation table, quarterly department colloquia, and workshops on topics like the job market and publishing. Next quarter we will be sponsoring a Library Day, when members will verify the proper shelving of books in the various sections related to Slavic and East European fields in the library stacks. We have also been trying this year to organize all of the people at the university who are involved in S&EE fields, so that next year we can include them in our activities, with the hope of establishing an awareness of colleagues in related fields and a sense of unity among scholars and scholars-to-be. Our departmental grad student representatives are also working to get the grad students more interested in activity in the affairs of the department. They are re-establishing our ties with the Council of Graduate Students and holding meetings to discuss grad issues, such as the fate of funding and the threatening effects of restructuring. Our graduate teaching assistants have helped put on sampler courses for Russian. And this year we have a Russian House-directed by a grad student-which sponsors a conversation table, tutoring sessions, movies, cultural events and potluck dinners."
" All of this we have been doing to increase our visibility on campus and to encourage people to take an interest in our department. This all sounds good, right? Unfortunately, progress is slow and there is still a high rate of non-involvement among the students."
"I would like to know what other _grad students_ at other universities are doing, and also how professors and administrators think students can be involved in the health and preservation of our departments. All comments and suggestions will be appreciated."
[ Remark: I don't know what others are doing. You are the first to have written about this subject that has caught my attention. I think it healthy that departments start "boot-strapping" and nourishing their academic value by creating their own economic support through a creative collaboration with the commercial sector DIRECTLY that earns for them DIRECT financial support. The graduate student department is an enormous potential resource for commercial firms exploring the new Slavic opportunities such as import, export, OEM component manufacture, American Business Centers funded by U.S. Commerce Department, Technical assistance projects funded by USAID, defense plant conversion projects financed by Defense Nuclear Agency, Monetary Policy consulting financed by U.S. Treasury Department and 100 foundations financing NGO and PVO activity in Slavic Countries. The total funding being thrown at Slavic Countries exceeds $22 billion. Surely there is a little piece of this pie that all participants would be willing to share with your Department. More than enough to finance its budget comfortably. For example:
COMPILED BY WORLD LEARNING INC.-This information was compiled by Scott Altmann and Margot Mininni who drew on many resources, among them: The CDC Compendium, the Business Information Service for the NIS (BISNIS) of the U.S. Department of Commerce, USAID, and information sent to World Learning's NIS office.
The PVO/NIS Project realizes there are a lot of worthy projects still unfunded. Therefore, we would like to present a partial list of alternative funding sources. It is important to keep in mind that such data is meant to serve as a point of departure for your own research and is evolving and always subject to change.
The sources of funding for activities in the NIS are many and varied. Unless you know where to look and precisely what you are looking for it can be confusing. In fact, in an ever-changing NIS environment, it is hard to know where funding is with any precision. There are many PVOs looking to tap into funds in the sectors of health, the private sector, democratic reform, exchanges and training, and women's health. INTERACTION, an association of U.S. PVOs, is seeking to coordinate and concentrate funding priorities for the NGO community in these sectors. The following provides an overview of some of these groups, their activities, and where available the $ amount of grants they may be distributing.
The Eurasia Foundation
1527 New Hampshire, NW
Washington, DC 20036
(202) 234-7370 phone
(202) 234-7377 fax
organizations/ $1,000-$25,000 NIS organizations
The National Endowment for Democracy
1101 15th Street, NW
Washington, DC 20005
(202) 293-9072 phone
(202) 223-6042 fax
NIS Role: Strengthen free/democratic institutions through U.S. private institutions
John D. and Catherine T. MacArthur Foundation
Public Information Office
5520 N. Magnolia Avenue
Chicago, IL 60640-1307
(312) 728-6996 phone
(312) 728-6886 fax
NIS Role: Support scientific and intellectual communities. Funding: $9 million, 3 years, initiated in 1992; research, work
grants, some grants to Russian organizations
Pew Charitable Trusts
2005 Market Street
Suite 1700
Philadelphia, PA 19103
(215) 575-9050 phone
NIS Role: Improve quality of life; educational, advocacy, and research activities
Soros Foundation 888 7th Avenue, Ste 1901 New York, NY 10106 (212) 757-2323 phone (212) 974-0367 fax NIS Role: Improve quality of life; work in media, government, legal environment , and education
The Ford Foundation 320 E. 43rd Street New York, NY 10017 (212) 573-5000 phone (212) 599-4584 fax NIS Role: Contribute to well-being of the public with funding for women's issues
Rockefeller Foundation
1133 Ave. of the Americas
New York, NY 10036
(212) 869-8500 phone
NIS Role: Confront causes of human suffering; past grants for both environmental research and conference/workshop attenders
Charles Stewart Mott Foundation
1200 Mott
Foundation Bldg.
Flint, MI 48502-1851
(313) 238-5651 phone
NIS Role: Quality of life issues; areas of environ- ment, institution building, political and economic reform
Rockefeller Bros. Fund
1290 Avenue of Americas
New York, NY 10104
(212) 373-4200 phone
(212) 315-0996 fax
NIS Role: Improve quality of life; promote global interdependence
The Fund for Democracy and Development
2033 M St., NW Ste. 506
Washington, DC 20036
NIS Role: Credit to small businesses and training to commercial banks; assist defense related conversion
Joyce Mertz-Gilmore Foundation
218 East 18th Street
New York, NY 10003
(212) 475-1137 phone
NIS Role: human rights through areas of democratic development, refugee support
Smith Richardson Foundation
60 Jessup Street
Westport, CT 06880
(203) 222-6222 phone
(203) 222-6282 fax
NIS Role: Grants to influence public policy and international affairs
John Merck Fund 11 Beacon Street Suite 1230 Boston, MA 02108 (617) 723-2932 phone NIS Role: promote disarmament, support Helsinki watch. Funding: grants from $500 to $775,000
ISAR (formerly the Institute for Soviet-American Relations)
1601 Connecticut, NW Washington, DC 20009 (202) 387-3034 phone
(202) 667-3291 fax
NIS Role: Environmental protection. Funding: Sowing the Seeds of Democracy, $1 million: small discretionary grants; Joining Forces for the Environment, $1 million: up to $75,000 per grant
Global Fund for Women 2480 Sand Hill Rd., Suite 100 Menlo Park, CA 94025 (415) 854-0420 phone (415) 854-8050 fax NIS Role: Women's Projects.
Funding: $500 to $10,000 grants to NIS organizations
The World Bank Group
Room H 2007
1818 H Street, NW
Washington, DC 20433
(202) 473-8261 phone
Attn: Mr. Westen
NIS Role: Financial and tech. assistance; opportunities for U.S. companies
The European Bank for Reconstruction and Development (EBRD)
(44) 71-338-6569 phone
(44) 71-338-6487 fax
NIS Role: Democracy building; advice, loans, debt guarantees
US Government
U.S. Dept. of Commerce
International Trade Administration
Special American Business Internship Training Program (SABIT) Room 3413
Washington, DC 20230
(202) 482-0073 phone
(202) 482-2443 fax
NIS Role: U.S. market development/business promotion; intern placement in U.S.
ALSO Consortia of American Businesses in the NIS (CABNIS)
200 Daingerfield Road
Alexandria, VA 22314
(703) 684-1080 phone
(301) 652-0141 phone
NIS Role: Foster U.S. commercial presence through business consortia Funding: $500,000 grants
U.S. Small Business Administration
Office of International Trade, Room 6114 409 3rd Street, SW
Washington, DC 20416
800 827-5722 phone
(202) 205-7064 fax
NIS Role: Assistance to U.S. businesses to develop export markets
Overseas Private Investment Corporation
1100 New York Ave. NW
Washington, DC 20527 (202) 336-8799 phone
800-424-6742 phone
(202) 408-9589 fax
NIS Role: Economic growth through U.S. private investment; loans, investment insurance/ services, project development
Export Import Bank
ExImbank of the US
811 Vermont Ave., NW
Washington, DC 20571
(202) 535-9664 phone
(202) 566-7524 fax (Insurance)
(202) 566-8208 phone
(202) 566-7524 fax (Guarantees and loans)
NIS Role: Insurance and loans to banks and enterprises to promote U.S. exports
U.S. Trade and Development Agency
SA-16, Rm. 309
Washington, DC 20523 (703) 875-4357 phone
(703) 875-4009 fax
NIS Role: Grants for U.S. exports which promote major development projects Sectors: oil and gas, transportation, defense conversion, health, power plants and distribution systems, electronics
U.S. Information Agency USIA, Rm. 751 301 4th Street, SW Washington, DC 20547 (202) 619-5057 phone (202) 619-5958 fax NIS Role: Democratic reform via exchanges, internships, training activities, an d information
projects. Funding: FY '94 figures unavailable at this time, however in FY '93 $97.35 million allotted of which $40 million came from Freedom Support Act
National Endowment for the Arts, International Activities Office
1100 Pennsylvania Ave., NW Rm 528
Washington, DC 20506
(202) 682-5422 phone
(202) 682-5602 fax
NIS Role: Promote U.S. artists and art groups through international exchange
U.S. Dept. of Agriculture
Rm 4079 SUSDA/FAS/EC
Washington, DC 20250
(202) 720-4274 phone
(202) 690-0727 fax
NIS Role: Commercial export and food aid programs through loan guarantees, some monetization programs, etc; promote agriculture
U.S. Dept. of Defense
(202) 783-3238 (CBD for contracts announcements)
NIS Role: nuclear dis- mantlement; aid to demobilized soldiers/ families, housing, defense conversion, job retraining. Funding: $979 million (FY '93 supplemental)
U.S. Agency for International Development
A.I.D./NIS Task Force
320 21st Street NW
Washington, DC 20523
(202) 647-9950 phone
NIS Role: React to political/ econ. change in developing democracies. Funding: $2.5 billion total of which $704 million FY '94 and $1.8 billion FY '93 (supplemental)
USAID NIS TASK FORCE PROJECTS/ OFFICES FOR 1994
Office of Emergency and Humanitarian Assistance (A.I.D.)
Don Eller (202) 736-6481
Alan Silva (202) 647-7614
Office of Energy, Environment, and Technology (A.I.D.)
Energy $254 million Contact: Edvard Markset (202) 736-4405
Environment $73 million Contact: James Bever (202) 736-4407, EnergyEnvironment, Commodity Import Program $125 million
Office of Economic Restructuring (A.I.D.)
Economic Restructuring $50 million, Contact: Jane Barden (202)
647-2808
Housing $190 million
Trade and Investment $365 million, Contact: Raghawendra Dwivdey (202) 647-2809
Office of Private Sector Initiatives (A.I.D.)
Private Sector $425 million Contact: Greg Huger (202) 736-4410
Privatization $125 million Hans Shrader (202) 736-4806
Enterprise Fund $250 million, Contact: Jean Hacken (202) 736-4414 Office of Democratic Initiatives, Health, and Human Resources(A.I.D.) Special Initiatives $151 million, Contacts: Regina Coleman, (202) 647-5876 Bryant George (202)736-4264
Health $109 million
Women's Health Initiative $10 million, Contact: Lee Hougen (202)
736-7760
Democratic Reform $82 million, Contact: Kris Loken (202) 736-4267
Exchanges and Training (A.I.D.) $225 million Contact: Thomas Chapman (202) 647-7751
Food Systems (A.I.D.) $48 million Contact: Loretta Williams (202)
736-4418
For foundations contact: the Citizens Democracy Corps (CDC), (202) 872-0933 or 1-800-394-1945; or The Foundation Center, (202) 331-1400 (DC), (212) 620-4230 (NY)
The BISNIS hot line for those interested in area business developments:
(202) 482-4655. Bids and contracts advertised in Commerce Business Daily (CBD) (202) 783-3238
In addition to non-profit organizations the for-profit organizations need services that your department can provide. Here are described the organizations which have received funding from the budget of the United States government. This funding is spcifically destined for co-investment in Russia and the CIS, with Russian American Investment Fund and organizations like Palms & Company, Inc. Investment Bankers.
As commercial opportunities continue to emerge in the NIS, it is necessary for Palms & Company to develop new and creative means of financing. The U.S. government is responding to these needs by assisting in the development of co-investment enterprise funds. The purpose of these enterprise funds is to address the general unavailability of foreign and domestic capital to private and privatizing firms in Russia and the CIS selected by Palms & Company. By investing in NIS companies Palms & Company obtains co-investment from these funds.
Many private co-investor investment investment funds are also beginning to emerge and express inteerst in co-investment with Russian Venture Capital Fund of America, some of which are included on the following list. The list is not comprehensive. Palms & Company has been in business since 1934 and has developed hundreds of relationships with potential co-investors in 40 countries. This list is in alphabetical order and is for general informational use only to demonstrate the scale and scope of potential investment activity in Russia. It does not represent an endorsement of any particular funds nor any representation that any of these funds would necessarily be co-investors with RVCFA. Each fund has its own investment criteria and procedures with which Palms & Company is familiar. We can advise you the constructive manner in which to proceed that will produce concrete results regarding "business plans", "feasibility studies", "Private Placement Memorandum's", "Capital Syndication Prospectus", "Marketing Study", "Financial Projections & Reports"which are a necessary part of this process.
A principle element in this Fund's investment strategy is the integration into the investment process of its four Finnish industrial partners - A. Ahlstrom Corp., Neste Corp., Nokia Corp., and the Metra Group. Eligible investment candidates will be private sector enterprises or public sector enterprises soon to privatized.
region:Eastern Europe, the Baltics and Russia.
investment type:Equity.
sectors:Telecommunications, construction materials, pulp and paper equipment, power generation, environmental technology, petrochemicals and plastics, and oil and gas.
restrictions:Project proposals other than those from the industrial partners must be presented to the partners for co-investment opportunities.
Alliance ScanEast Fund
Alliance Capital Management Corp.
1345 Ave. of the Americas
New York, NY 10105
Tel: 212-969-1050
Fax: 212-969-2221
The Fund makes small early-stage investments in Russian projects and in U.S.-Russian joint ventures.
Russia
125299 Moscow
ul. Kosmonavt Volkova 14
American Investment Group of Naples
Chairman
Herbert Van Dyke
Tel: 7-095-156-9626
Fax: 7-095-156-9670
As of August, 1994, this Fund had raised about $13 million in private funds and anticipated raising an additional $40-50 million. Brunswick acquires majority stakes in small and medium-sized companies through acquisition of vouchers and shares on secondary markets, and maintains active management in its holdings. Brunswick invested the
majority of its current capital in heavily-discounted Russian blue-chip companies during the voucher privatization era.
region:Russia.
investment type:Equity (vouchers or acquisition of shares on
secondary market).
project size:$200,000 to $600,000.
sectors:Oil and gas (oil extraction), utilities such as electrical energy and telecommunications, mineral extraction and processing, and fishing fleets.
Russia
Moscow 103051
25/3 Tsvetnoy Boulevard
Manager
Martin Andersson
Local Tel: 7-095-291-6358
Satellite Tel: 501-929-98-00
Fax: 7-501-929-98-01
Based in St. Petersburg, CARESBAC was capitalized by the U.S. Department of Agriculture at $3,500,000. To apply, Russian enterprises must obtain a Company Profile form from the St. Petersburg CARESBAC office.
region:Russia (St. Petersburg area).
investment type:Equity (minority position), preferred stock and debt convertible into equity.
project size:$75,000 to $200,000 to small-to medium-sized businesses of between 15 and 100 employees with majority Russian ownership and an annual ruble turnover of between $150,000 and $2 million.
sectors:Food processing and distribution, "green" enterprises, light manufacturing, construction industry-suppliers and business service providers.
Russia
St. Petersburg 190008
Lermontovsky Prospekt 7, 2nd floor
General Director
Graham Humes
Tel: 7-812-119-6336
Fax: 7-812-119-6337
Thomas C. Gibson
President
CARESBAC
1401 New York Ave., N.W., Suite 1000 Washington, D.C. 20005
Tel: 202-737-8463
Fax: 202-737-5536
The Central Asian-American Enterprise Fund is being capitalized by the U.S. Government at $150 million over the next three to four years. It will be managed by a private Board of Directors, and will have the authority to make equity investments and loans and offer technical assistance to promote new private companies and entrepreneurs in the Central Asian states, with emphasis on the promotion of small and medium-sized enterprises. In addition, special attention will be given to joint ventures involving regional partners, such as Turkey, India, Israel and Pakistan, though U.S. partners are preferred. The Central Asian-American Enterprise Fund will open offices in the United States, Almaty, and Bishkek.
region:Kazakhstan, the Kyrgyz Republic, Uzbekistan, Tajikistan and Turkmenistan.
investment type:Debt and equity.
project size:$500,000 to $1.5 million.
Established by the Department of Defense under the 1994 Defense Appropriations Bill, the $40 million Defense Enterprise Fund (DEF) will promote private sector investment and restructuring in the Russian defense industry. The Defense Department is establishing this Fund as a non-profit corporation with a board of directors appointed by the President. Investments will be diversified among smaller enterprises or spinoff enterprises derived from larger defense enterprises, large enterprises that have converted or are in the process of converting, and start-ups formed by formerly defense or military personnel. region:Russia, Ukraine, Kazakhstan and Belarus.
investment type:Debt and equity, possibly some grants.
project size$1 to $3 million.
sectors:Enterprises which include personnel and/or facilities currently or formerly involved in research, development, production or operation and support of the defense sector of four Republics of the former Soviet Union, with a focus on conversion of facilities which previously contributed to the production of weapons of mass destruction. Also eligible are firms associated with the production of command, control and communications equipment for military forces associated with such weapons, and with the production of strategic defense systems.
restrictions:The Fund will make investments only in initiatives involving privatized enterprises or enterprises that commit in writing to privatization. An enterprise will be considered privatized when greater than 50% of the ownership and control is in the private sector. At least one of the partners in any joint venture should be from a country outside the NIS, with preference given to joint ventures with U.S. involvement.
Arthur Sweeney
P.O. Box 27002
6601 West Broad Street
Richmond, VA 23261
Tel: 804-281-2129
Fax: 804-281-2245
The objective of the $300 million EBRD Small Business Fund is to strengthen micro and small enterprises in Russia. Equity finance from this multilateral Fund would be delivered mainly through regional investment companies established with autonomous management structures. The investment companies would utilize a range of quasi-equity instruments to finance enterprises. Ruble finance is available for enterprises with up to 20 employees. Based on the initiative taken at the July Tokyo Summit, G-7 Governments are contributing resources for the capitalization of this Fund; the U.S. contribution is $30 million.
Initially, the EBRD Fund will establish a pilot program to determine the appropriate structure and operation for the expanded Fund. The three regional pilot programs will be established in Tomsk, Tula, and Nizhny Novgorod.
region:Russia.
investment type:Debt, equity, loan guarantees.
EBRD is capitalizing this fund at $30 million, with additional capital sought from private investors. This Fund will be run by a private western company, currently being selected. The Fund is intended to facilitate modernization, expansion and/or restructuring of privatized enterprises. A key criterion is strong management.
region:Russian Far East.
investment type:Equity.
project size:$300,000 to $3 million.
restrictions:No hard liquor, tobacco or firearms, must have a western partner.
Peter Stretter
One Exchange Square
London EC2A 2EH
United Kingdom
Tel: 44-71-338-6824
Fax: 44-71-338-6119
Dr. Palm's liaison at EBRD is Sven Hegstad. Dr. Palms has been invited personally by Jacques de Larosiere, present of EBRD to participate in-the Annual Meeting of the Board of Governors of the EBRD.
Russian voucher investment fund that invested in Russian companies. Bought and sold privatization vouchers.
Russia
121069 Moscow
Tribnikovskiy Pereulok 21, Str. 2
First Investment Voucher Fund
Mikhail Orevich Chebotarev
Tel: 7-095-290-0053
Fax: 7-095-291-8783
OPIC will provide a loan guaranty to Baring International Investment Management Ltd. to manage the First NIS Frontier Fund. This Fund is expected to raise at least $100 million. This Fund will take equity positions in new or expanding companies of various sizes engaged in the sectors listed below. Arthur A. Hartman, former Ambassador to the Soviet Union, will be the chairman to the Fund. Sovlink-American Corporation, a business advisory firm, will serve as investment advisor for the Fund, with Tokobank, a Russian bank, serving as consultant and S.G. Warburg Securities as the placing agent. The First NIS Frontier Fund anticipates beginning operations within 6 to 12 months (as of 10/94).
region:NIS.
investment type:Equity.
sectors:Financial services, infrastructure development and consumer products.
London-based Fleming Investment Management, Ltd. has announced the launching of this closed-end Fund to invest in shares of newly-privatized Russian companies. Brunswick Investment, Ltd. will act as advisor to Fleming on the Fund.
investment type: Equity.
The Framlington Russian Investment Fund is a private, London-based investment Fund targeted at Russian joint ventures. It was capitalized in January, 1994 with $65 million ($16 million from EBRD, $8 million from the World Bank, and the remainder from U.S. and pension funds). 80% of the funds invested in the first year will go to companies with largely western control, however, projects will include those with western minority shareholders . The Bank of Austria, Smith New Court, and CCF Elysees Bourse are the agents for this London based Fund.
region:Russia.
investment type:Equity.
project size:Investments will be between $500,000 - $4 million, with projected average of around $2 million. An equity position of anywhere from 10-40% is possible, though 20% is preferred. Projects requiring less than $500,000 can be considered if anticipated future financing requirements will raise the Fund's total contribution above $500,000.
restrictions:No hard liquor, tobacco or firearms, must have a western partner.
Gary Fitzgerald
Framlington Russian Investment Fund
155 Bishopsgate
London EC 2M3XJ
United Kingdom
Tel: 44-71-374-4100
Fax: 44-71-382-9116
Moscow Tel: 7-095-924-5496
Moscow Fax: 7-095-924-5496
Capitalized by the U.S. Government, the Fund for Large Enterprises in Russia significantly fulfills the U.S. commitment to provide equity to the Special Privatization and Restructuring Program, adopted at the July G-7 Summit in Tokyo. The Fund for Large Enterprises in Russia is intended to provide urgently needed equity capital to medium and large Russian companies emerging from the mass privatization program underway.
Like the Russian-American Enterprise Fund, the Fund for Large Enterprises in Russia is a U.S. not-for-profit corporation governed by a U.S. board of directors, appointed by the President, and managed by a team of financial experts selected by the board. President Clinton has appointed W. Michael Blumenthal as chairman of board of directors. The Fund will operate in specific regions to be determined by the Board and in parallel with equity funds to be established jointly by other G-7 donors, EBRD, and the International Finance Corporation. The U.S. Government will capitalize the Fund at $100 million this fiscal year. With a proposed capital-recovery guarantee from OPIC, FLER will be expected to raise private capital on its own.
Particular attention will be given to enterprises that occupy key positions in the Russian economy (determined by size, employment, and strategic significance), as well as potential investments considered too risky by other private investors, due to lack of a track record or the political and economic environment in which they operate.
region:Russia.
investment type:Debt and equity, as well as technical assistance.
The Fund for Large Enterprises in Russia
17 State St., 25th Floor
New York, NY 10004
Tel: 212-668-8394
Fax: 212-483-0999
Junction Investors Ltd. (JIL) is a private investment and capital company. JIL provides management assistance when necessary, as well as arranges for additional debt and equity funding if needed. Preferred investments are small to medium-sized businesses with long-term growth potential.
region:NIS.
investment type:Debt and equity.
project size:$1 to $5 million.
sectors:Infrastructure-related industry, in particular real estate and telecommunications.
Thomas R. DiBenedetto
President
Christopher A. Lingeman
Executive Vice President
84 State Street, 2nd Floor
Boston, MA 02109
Tel: 617-248-9600
Fax: 617-248-9652
The Fund for Democracy and Development, a non-profit organization, created this for-profit subsidiary as part of its Russian Commercial Bank Development Project. The NRSBIF's initial capital is being provided by the U.S. Department of Agriculture and its initial operating costs are being covered by U.S.A.I.D. Additional capital will be raised from private sources.
The NRSBIF will offer financing to small and medium-sized businesses. through Russian banks that are or plan to be "active in the small business sector." Initially financing will be in rubles, but the Fund hopes to eventually offer dollar financing. With a base of operations in Moscow, the NRSBIF plans to work with banks in at least four or five cities and to add other cities over the next few years.
region:Russia.
investment type:Debt and equity.
project size:$20,000 to $200,000, in rubles.
Lewis Townsend
Executive Director
Fund for Democracy and Development
2033 M Street, NW
Washington, D.C. 20036
Tel: 202-296-5353
Fax: 202-296-5433
NCH ADVISORS
This company manages four investment funds operating in the region through the New Century Holdings Group. The group generally seeks to be an active shareholder in its holdings.
region:NIS.
investment type:Debt and equity.
sectors:Natural resources, telecommunications, banking, real estate, agro-industry, pharmaceuticals and high technology.
Alexander Papachristou
635 Madison Avenue, Fourth Floor
New York, NY 10022
Tel: 212-308-4343
Fax: 212-308-4398
The New Europe East Fund, managed by Capital International (London), is capitalized at $150 million to invest into projects in Eastern and Central Europe and the former Soviet Union. EBRD invested $25 million into the Fund. They will consider investing in new or existing large joint ventures with reputable western industrial partners.
region:NIS.
investment type:Equity.
project size:$5 to $15 million, with an upper limit of 20% of equity.
Lam Nguyen-Phuong
Vice President
25 Bedford Street
London WC2E 9HN
Tel: 44-71-257-6700
Fax: 44-71-257-6767
Newstar is a merchant bank capitalized by AT&T and GM pension funds. Preferred candidates are private, small to mid-sized manufacturing enterprises that include a western partner.
region:NIS.
investment type:Equity.
project size:$500,000 to $3 million.
sectors:Construction and related industries, food processing and distribution, warehousing, light manufacturing and telecommunications.
Russia
103001 Moscow
19-20 Vspolni Pereulok, 19/20
Newstar
Director of Investments
Jeffrey Hammer
Tel: 7-095-291-8338
Fax: 7-095-291-2926
Brad Wegner
Investment Manager
Newstar
1001 Pennsylvania Avenue, N.W.
Suite 480-North
Washington, D.C. 20004
Tel: 202-783-4155
Fax: 202-628-5986
The Overseas Private Investment Corporation (OPIC) has provided a $75 million loan guaranty to Paine Webber to help establish the Russian Partners Fund (RPF). It is expected to be capitalized at about $105 million, with funds coming from a variety of private sources. Notably, the Russian government has provided $5 million of this total, and has given OPIC a $20 million "back-door" guarantee to help lower OPIC's exposure on its guarantee to Paine Webber.
Whenever possible, the Paine Webber Russian Partners Fund directors will attempt to use their investment to leverage loans from other sources, such as EBRD or the IFC.
region:Russia.
investment type:Equity.
project size:Maximum of $15 million.
sectors:Primarily consumer products, telecommunications, natural resources and light manufacturing. Investments with an export
component are especially attractive.
restrictions:No investments that will cause environmental damage in Russia, or that will have a deleterious impact on the U.S. economy.
Drew Guff
Paine Webber Russian Partners Fund
1285 Sixth Avenue, 14th Floor New York, NY 10019
Tel: 212-713-3214
Fax: 212-713-1087
Dr. Palms & the Chairman of Paine Webber have meet with Anatoliy Borisovich Cubais, Deputy Prime Minister Russian Federation.
The Pioneer Fund was capitalized at $3 million as of January 1994, but U.S.-based Pioneer Group expects the Fund to be as large as $100 million within a year. It has established a management arm in Russia in conjunction with the Transitional Economy Institute and Association of Privatized and Private Companies. Pioneer will look into long term projects with export potential.
Moscow Tel: 7-095-917-2312
Moscow Fax: 7-095-917-3607
The Russian-American Enterprise Fund is currently in operation, and is being capitalized by the U.S. Government at $340 million over a three-year period, with the expectation that the Fund will become self-financing thereafter. The Fund is governed by a U.S. Board of Directors, chaired by Gerald Corrigan.
The Fund has an office in Moscow and plans to open one in the Khabarovsk. $40 million has been set aside for its operations in the Russian Far East. It is anticipated that the Fund will attempt to diversify its portfolio as quickly as possible, both in terms of geographic regions and industry sectors. Additionally, the Fund has a Small Loan Program,
in which Russian banks make loans of between $5,000 and $100,000 of
the Fund's money.
region: Russia.
investment type:Debt and equity, some technical assistance.
project size: The Fund will not invest more than $10 million in a single project.
restrictions:In equity investments, other investors should provide at least 50% of the firm's equity capital. The Fund will not invest in firms with more than 2,500 employees.
Dove Ballon
17 State St., 26th Floor
New York, NY 10004
Tel: 212-483-1177
Fax: 212-483-0999
Russia
103051 Moscow
Tsvetnoy Boulevard, 25/3, 5th Floor
Russian American Enterprise Fund
Irina Chistayakova
Local Tel: 7-095-929-9888
Satellite Tel: 7-501-929-9888
Fax: 7-095-929-9828
RARE is a limited partnership operated by the New-York based Providence Capital. RARE invests in small to mid-sized businesses with both strong short-term profit potential and long-term growth potential.
region:Russia.
investment type:Equity.
project size:$1 to $5 million.
contact:Herbert A. Denton
Partner
Russia and the Republics Equity Partners LP. 730 5th Avenue
New York, NY 10019
Tel: 212 888 3200
Fax: 212 888-3203
Russia
Moscow
Kamergersky Pereulok 5
Russia and the Republics Equity Partners LP.
Chairman
Joseph Condon
Tel: 7-095-235-0414
Fax: 7-095-239-1327
Lehman Brothers will manage the $300 million Russia/NIS Major Projects Fund, which expects to begin operating in six to twelve months (as of 10/94). While the Fund will be capitalized by private investors, OPIC is guaranteeing 75% of the capital.
region:NIS.
investment type:Equity.
project size:$10 to $20 million.
sectors:Telecommunications, energy development, transportation and metals processing.
restrictions:Must be in location eligible for OPIC support.
Jennifer Moran
Corporate Financial Analyst
Russia/NIS Major Projects Fund
3 World Financial Center
Tel: 212-526-2149
Fax: 212-619-7165
Sector Capital works with Russian allies to provide investment banking services, seed capital and co-financing.
region:Russia, particularly Far East.
investment type:Debt and equity.
project size:$5 to $50 million.
sectors:Transportation and infrastructure. Russia
117071 Moscow
Leninsky Prospekt 13, Suite 122
Sovcap, Inc.
Managing Directors
Natalya Romanova
Evgeny Okun
Tel: 7-095-237-4680
Satellite Tel: 7-503-956-2108
Fax: 7-095-237-9009
Managed by Palms & Co., this Fund will co-invest as a passive investor alongside other funds. The focus is on projects with strong western participation. This Fund may invest in western partners to enable them to meet co-investment requirements of some government agencies and institutional investors. The Fund is capitalized at $100 million, all private and institutional investors.
region:NIS.
investment type:Debt and equity.
project size:Avg. $5 million.
FOR ALL PROJECT FINANCE CONTACT
Dr. Piotr Johannevich van de Waal-Palms
Russian Venture Capital Fund of America 6421 Lake Washington Boluevard Northeast
Palms Bayshore Building, Penthouse Suite #408Department atKirkland (Seattle, Washington, U.S.A. 98033-6876 Tel: 1-425-828-6774 & 1-425-827-5528
E-mail (Internet) <palbank@PeterPalms.com>
Run by Siparex, a French firm, this Fund will concentrate on facilitating modernization, expansion, and/or restructuring of privatized companies.
The Fund is capitalized by EBRD at $12 million.
region:Smolensk Oblast, Russia.
investment type:Equity, some technical assistance.
project size:$300,000 to $1.2 million.
restrictions:No hard liquor, tobacco or firearms. Siparex
139 rue Vendome
69477 Lyon Codex 06
France
Tel: 33-78-52-41-07
Fax: 33-78-52-61-63
Peter Stredder
European Bank for Reconstruction and Development One Exchange Square
London EC2A 2EH
Tel: 44-71-338-6824
Fax: 44-71-338-6119
EBRD is currently negotiating with prospective western Fund managers. The Fund will concentrate on facilitating modernization, expansion, and/or restructuring of privatized companies. It is currently capitalized at $30 million.
region:St. Petersburg and Leningrad Oblast, Russia.
investment type:Equity, some technical assistance. project size:$300,000 to $3 million. restrictions:No hard liquor, tobacco or firearms.
Peter Stredder
European Bank for Reconstruction and Development One Exchange Square
London EC2A 2EH
Tel: 44-71-338-6824
Fax: 44-71-338-6119
This Fund makes venture capital investments in private Ukrainian companies. Ukrainian nationals should have a sizeable share of the venture. The Fund is capitalized at $12 million.
region:Ukraine.
investment type:Equity.
project size:Avg. $200,000.
Ukraine
Kiev 252021
21 Artema Street
Ukraine Fund
George Yurchyshyn
Tel: 7-044-212-3138
Fax: 7-044-212-1819
Tom Claflin
Partner
77 Franklin Street
Boston, MA 02110
Tel: 617-426-6505
Fax: 617-482-0016
Flemmings Management Corporation will run this Fund, which will make investments in small and mid-sized businesses. The Fund will concentrate on facilitating modernization, expansion, and/or restructuring of privatized companies. It is currently capitalized by EBRD at $30 million. region:Sverdlovsk, Perm and Chelyabinsk Oblasts, Russia.
investment type:Equity, some technical assistance. project size:$300,000 to $3 million. restrictions:No hard liquor, tobacco or firearms. Peter Stredder
European Bank for Reconstruction and Development One Exchange Square
London EC2A 2EH
Tel: 44-71-338-6824
Fax: 44-71-338-6119
The Western NIS Enterprise Fund is capitalized by the U.S. Government at $150 million, and will focus on small- to medium-sized enterprises in Ukraine, Belarus and Moldova. It will most likely function in a manner similar to the Russian-American Enterprise Fund, but details are still being worked out. Glen H. Hutchins, former Managing Director of the Thomas E. Lee Company, will be the Chairman of the Fund. Offices will be set up in Minsk, Kiev and Chisinau in coming months.
region:Belarus, Moldova, and Ukraine.
investment type:Debt and equity.
So what I am saying is. Slavic studies are alive and well and when viewED in conjunction with commercial activity they are enormously important right now to the Western World and offer a bridge over cultural canyons that can turn all the effort and money being directed at economic reconstruction INTO productive concrete results. There is plenty of room for support of your Department in the process.
Become a leader in this and the world will beat a path to your door. I am willing to collaborate in the following ways
1. Send you information about recent grants offered in social and cultural restructuring in Slavic countries
2. Send you Email address of academics in slavic countries
3. Advise on how to provide concrete services to commercial firms seeking development of Slavic markets
4. Referral of firms seeking the assistance of your department.
5. Send you files for Creation of an ftp or WWW site at your University for archiving of tutorials and distance education materials for Slavic countries in Russian and Ukrainian and English
4. Help you become a resource center for Health organizations operating in Slavic countries
5. Help you become a resource center for agricultural consultants proving advisory services in Slavic countries
6. Develop translation resources for nuclear power plant operating manuals for NRC for Slavic countries, translation of Boeing aircraft operating manuals, etc etc etc.
7. Education projects consulting for "World Learning" "Counter Organization"
9. Help you to provide support for media development projects for Slavic newspapers, radio, television for RADIC and RAPID etc. funded by USAID.
I will stop here. Ah to be young and adventurous again and have all these opportunities at your feet. You are so fortunate to live in such an exciting time in history. How can one bear to sleep and miss a moment of it. GO. BE. DO. I envey you.
Dr. Pyotr Johannevich van de Waal-Palms, Sovetnik Pravitelstva CWA, Tovarichestvo Palmsa, Inc. Investment Bankers. Washington, USA
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