Russian Direct Investment Fund (RDIF) and Kuwait Investment Authority (KIA) Announce Automatic Co-investment Mechanism With $500m KIA Commitment

ST. PETERSBURG, Russia, June 21, 2012 /PRNewswire/ --

RDIF also launches Pre-IPO investment program with BlackRock, Goldman Sachs and Franklin Templeton targeting companies planning MICEX-RTS listing

During a meeting at the St. Petersburg International Economic Forum between Russian President Vladimir Putin and the heads of leading global investment and securities firms, the Russian Direct Investment Fund (RDIF) and Kuwait Investment Authority (KIA) announced the launch of an automatic co-investment mechanism.

The initiative, which will see KIA invest $500 million alongside the RDIF, was announced by Bader Mohammed Al-Saad, Chief Executive Office and Managing Director, KIA, in the meeting with President Putin. The co-investment mechanism means that KIA will co-invest in all RDIF transactions.

Mr. Al-Saad commented: "Russia's economy will continue to grow faster than those of developed countries. Co-investing with the RDIF offers us a good opportunity to invest in the real economy and gain diversification across all sectors. This is not a short-term investment in the stock market prone to volatility; it is an excellent and fair partnership with the RDIF and there is Russian government support for this partnership. We highly rate the skilled management team of the RDIF."

Kirill Dmitriev, Chief Executive Officer of the RDIF, said: "Automatic co-investment by the Kuwait Investment Authority, one of the largest and most respected investors globally, significantly increases the funds the RDIF can invest in the Russian economy. We are delighted to be announcing a major co-investment with a leading fund from the Middle East, already second for the RDIF, as historically that region of the world has not been well represented among foreign investors in Russia."

The meeting with President Putin included the following participants from the RDIF's International Advisory Board:

• Bader Mohammed Al-Saad, Chief Executive Officer and Managing Director, Kuwait Investment Authority
• Kurt Bjorklund, Co-managing Partner, Permira
• Leon Black, Chairman and Chief Executive Officer, Apollo Global Management
• David Bonderman, Co-founder and Managing Partner, TPG
• Chong-Suk Choi, President and Chief Executive Officer, Korea Investment Corporation
• Lou Jiwei, Chairman and Chief Executive Officer, China Investment Corporation
• Michael Phillips, Partner, Apax Partners
• Laurent Vigier, Director of European and International Affairs, Caisse des Dépôts International

In the course of the meeting it was also announced that a consortium of leading international investors that manage in excess of $5 trillion - BlackRock, Goldman Sachs and Franklin Templeton - have joined the RDIF in launching a Pre-IPO program targeting investments in leading Russian companies planning an IPO on the Moscow stock exchange MICEX-RTS.

Notes for editors:

The Pre-IPO program will seek to make investments in Russian companies with annual revenues in excess of USD 500m that are planning to go public on the Moscow stock exchange MICEX-RTS within the next 6-18 months. Each investment will be decided upon by the program's co-investors acting separately in their own discretion.

Russian Direct Investment Fund (RDIF), established in June 2011, is to be capitalized with $10 billion in Russian government funds to make equity investments that generate strong returns. In each investment it makes, RDIF is mandated to secure co-investment that as a minimum matches its commitment, thus acting as a catalyst for direct investment into the Russian economy. Kirill Dmitriev has been Chief Executive Officer of the RDIF since its inception. Additional information is available at http://www.rdif.ru.

The Kuwait Investment Authority (KIA) is an autonomous government body responsible for the management and administration of the General Reserve Fund (GRF), and the assets of the Future Generations Fund (FGF), as well as any other funds entrusted to it by the Minister of Finance for and on behalf of the State of Kuwait. KIA manages assets of USD 290 billion. The Authority invests in the Local, Arab and International Markets with its main office located in Kuwait City and a branch office in London, UK. Additional information is available at http://www.kia.gov.kw