First
Russian
Search
fund

“First Russian Search fund” LLC is managing investments in search funds, targeting acquisition of SMEs in Russia and CIS.

We provide talented and ambitious professionals with an opportunity to acquire and manage the company of their dreams with our support.

Search funds

Search fund – investing in the search for and acquisition of stable and profitable companies whereby the searching professional becomes the CEO in the company with a high motivation for growing the profitability and size of the business.

Search funds as an investment vehicle are getting more popular globally

325

Funds operating in all regions

28.4%

Average rate of return

x12

Investments managed by the search funds increase over a 25-year period

Target companies for investing:

finance

5-30M

Enterprise value($)

>10%

High and growing margins

No default on taxes, levies, insurance contributions, fines or penalties

geography

Companies operating in Russia or the CIS

In case of an opportunity to invest in companies from a different geography, the opportunity will be considered

investment stages

Investments in stable companies, which demonstrate profitable business for 2 preceding years and are at the stage of growth/expansion

industries

Choice of the industries for searching and acquiring companies depends on the current situation in the market, competencies of the Searching Partner, and advice from investing partners. Preliminary choice:

B2B

Development, construction and asset management ecosystem

Agriculture and food industry

Information technology

additional criteria

Quality of operations

Simple and easy to understand
High return on invested capital
Clearly identifiable areas of improvement

Quality of the industry and market position

Low risk
Size, growth rates and stability of initial demand
Company’s potential for protecting its positions
Stable customers and suppliers, including a high share of recurrent sales
Diversified business

Quality of liquidity options

Predictable set of future buyers
Possibility to ensure a total annual return on capital of 25% or higher

Investment process arrangements:

Raise funds to the partnership

2-6 months

To search and acquire companies, we will set up an investment partnership
We plan to build a base of investors who will support the searching partners with their vision of the potential search areas and the target companies to be acquired
Funds allocated for the search are converted to the equity (shares) of the target company with a 50% premium

Search for and evaluate opportunities

1-24 months

Companies will be searched in 3 ways
1. Via a social network of First Russian Search Fund
2. Regular search using databases
3. Via information brokers: banks, legal and consulting companies, other funds, CEOs
Key company selection criteria are described in “Target companies for investing”

Finance and make a transaction

2-6 months

Target company will be financed with
- Bank loan
- Investment partnership capital
- Option for the seller
Investors who financed the search have a preemptive right to increase their investment obligation to acquire the company

Manage the target company business

4-7 years

Participation in the management and development of the target companies via
- General Partners Meeting
- Partnership Investment Committee
- Membership in the target company’s Board of Directors
Searching Partner becomes the company СЕО

Sell the target company

Company divestment
- Sale to major holdings
- Sale to other investors
- Company buyout with borrowed funds

Contacts

Address:
117393, Moscow, st. Profsoyuznaya, d 76, 2nd floor, office No. 56

E-mail:
office@frsf.ru

Phone:
+7 905 502 8485

Write to us