By Ivan Anderzhanov
Prosperity Capital, Russia’s biggest portfolio fund manger, has raised just $150m for its Quest 11 special situations fund, well below its $500m target.
The original Quest’s taggering 3,000 plus returns over a decade were not enough to entice more institutional investors to part with their money.
Investors in the new vehicle include Nordic, Continental European and Middle Eastern institutions and family offices, in what has been admittedly a tough climate for European fundraising.
Mattias Westman, founding partner at Prosperity, said in a statement: “It is pleasing that Prosperity Quest II has attracted strong institutional interest and that we have completed one of the largest Emerging Market fund launches of the last three years – despite the current turbulence in the global markets.
By gaining exposure to company restructuring and consolidation opportunities in Russia and the CIS, Prosperity Quest fund has returned 43% a year in dollar terms since its 1999 inception. It is the world’s best performing fund over the last ten years, in all categories, according to Morningstar data.
Quest II is designed to tap into similar restructuring and consolidation opportunities – but within a closed ended structure formed by a privately-held vehicle, domiciled in Guernsey.
