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. Last Updated: 07/27/2016

Delta to Raise $550M For New Equity Fund

Delta Private Equity Partners is looking to raise $550 million for a private equity fund targeting the financial services, consumer and technology sectors, a source familiar with the matter said.

Delta, one of the pioneering private equity players in Russia, has already held road shows for potential investors and will be ready to launch the fundraising round as soon as its current fund is 75 percent invested.

The existing fund, founded in 2004 with committed capital of $120 million, is 72 percent invested, so it will only take the completion of one more deal to clear the way for the launch of the new fund, Delta's third.

"We've already presented to around 200 investors and there is a lot of interest," the source said, speaking on condition of anonymity.

Delta declined to comment, citing legal restrictions.

The source said the performance of Delta's current fund, which has generated an internal rate of return of over 220 percent, had whetted the appetite of investors keen to profit from the country's economic boom.

Recent disposals include Compulink, a systems integrator, at 4.8 times initial investment, and Independent Network Television Holdings, operator of the TV3 channel, at 12.8 times cost.

Individual investments by the new fund will be $30 million to $40 million, up from $5 million to $15 million previously, but Delta wants to restrict deal size to focus on consumer, technology and, in the future, biotech and health care investments. Delta does not invest in natural resource industries and privatizations. It also avoids real estate and prefers financial services to more capital-intensive banking, where it has been active in the past.