Power Fund to List in London
 

Prosperity Capital said that it was seeking to raise at least $200 million this year in a London listing for New Russian Generation, a power-focused fund that is well positioned to take advantage of the liberalization process in Russia's electricity industry.

"We are raising capital to ... participate in the upcoming privatizations of three core generation companies where we have invested," Prosperity CEO Alexander Branis said Monday.

New Russian Generation, whose power industry portfolio is worth approximately $1.6 billion, has a 27 percent stake in thermal and power generation company TGK-2, and 19 percent stakes in both TGK-4 and TGK-6.

The investment firm, which was created earlier this year through the merger of two Prosperity funds, also has stakes in a number of electricity distribution companies, which are currently in the process of being rolled into two distribution companies, MRSK Center and MRSK Volga-Center.

The fund plans to take part in the upcoming privatizations of the territorial generating companies, expected to take place by early 2008, as state-owned Unified Energy System spins off its electricity assets to attract much-needed investment and competition to the sector.