Rumours emanating from the ranks of the prominent financial group state that Ovetii aims to gain returns of as much as 40% by taking advantage of a boom in construction projects leading up to the 2014 Winter Olympics.
Fuelling the rumours are statements such as one by Ovetii’s Gregory Matthews in which he reportedly said that infrastructure was currently one of Russia’s most promising growth stories. Apparently he went on to say that there is an urgent need for investment following 15 years of under-investment, especially with the large construction projects needed for the 2014 Winter Olympic Games and the 2012 Asia-Pacific Economic Cooperation Forum.
According to the rumours Ovetii hopes that after fees, which are relatively high for institutional investors at 1.5% with a performance fee of 20%, the vehicle hopes to return 40% a year through its three-year life.
The rumoured fund launch comes after Russian lender Vneshekonombank and the Development Bank of Kazakhstan proposed raising a $1bn fund for infrastructure investment on Thursday, according to Russian state news agency RIA Novosti.
