UFG Private Equity buys minority stake in Russian Towers

UFG Private Equity has acquired a minority stake in Russian Towers, which owns and operates passive infrastructure and provides co-location solutions for mobile operators in Russia. The seller was Macquarie Russia & CIS Infrastructure Fund. No financial terms were disclosed.


28 November 2018, Moscow

UFG Private Equity announces that its Fund III has completed acquisition of a large minority stake in Russian Towers from its co-investor Macquarie Russia & CIS Infrastructure Fund (MRIF). Amount and terms of transaction are not disclosed. Russian Towers is the leader of independent telecom infrastructure market in Russia, it owns and operates passive infrastructure and provides co-location solutions for mobile operators.

Through its previous Fund II, UFG was a founding investor in Russian Towers alongside the EBRD in 2009 and remains a significant shareholder. Since inception approximately $160m of equity capital has been raised to finance the Company’s development. UFG syndicated part of the funding required to complete the current acquisition of MRIF’s stake.

Dominic Reed, Partner at UFG Private Equity remarked: ‘We are pleased that the UFG Asset Management platform increased its commitment to Russian Towers. This transaction re-enforces our interest in infrastructure as a distinctive asset class in our markets’.

Alexander Chub, CEO of Russian Towers commented: ‘We have had tremendous benefit from Macquarie’s expertise in similar businesses around the globe and we are grateful for MRIF’s important contribution to the success of Russian Towers during their time as shareholders’.

Aaron Rubin, MRIF CEO further commented: ‘We are proud that during our shareholding of Russian Towers the business has grown from a start-up with c. 100 sites into a leading independent tower company with over 3,000 sites in 55 Russian regions. We believe that the business is well positioned for further growth under the ownership of our partners, whom we have enjoyed working with since 2012.’

About UFG Private Equity:
UFG Private Equity invests in fast-growing companies in Russia and CIS countries, focusing on Healthcare, Business Services, Telecom & Technology, and Consumer Staples & Retail. The three UFG Private Equity funds have a total of $712 million of investments and commitments and $186 million raised in co-investment vehicles. UFG Private Equity offers co-investment opportunities on larger deals.

About Macquarie Infrastructure and Real Assets (MIRA):
Macquarie Infrastructure and Real Assets (MIRA) is a division of Macquarie Asset Management, the asset management arm of Macquarie Group, a diversified financial group providing clients with asset management, banking, advisory and risk and capital solutions across debt, equity and commodities.
More than 20 years ago MIRA pioneered investment in a new asset class for institutional investors –infrastructure. Today we combine two decades of experience and expertise to manage the assets that people use every day across infrastructure, real estate, agriculture and energy. As at September 2018, MIRA has assets under management of more than €111.4 billion invested in 148 portfolio businesses,