Georgia’s prime minister and the $6bn private equity fund | beyondbrics

Georgia’s prime minister and the $6bn private equity fund | beyondbrics:

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Bidzina Ivanishvili, billionaire prime minister of Georgia (pictured), has launched a much-vaunted private equity fund less than a month before key presidential elections.

The $6bn Georgian Co-Investment Fund has attracted heavyweight investors including the UAE’s Abu Dhabi Group, Turkey’s Calik Holdings and China’s Milestone Intl Holding – plus a commitment of $1bn of his own money from Ivanishvili himself. The fund’s size and governance structures raise concerns in an environment where business and politics have often been intertwined.

The GCF aims to finance projects in energy, tourism, manufacturing, agriculture, infrastructure and other areas. George Bachiashvili, its 28-year-old chief executive, said in an interview: “GCF will prioritize projects worth over $5m. It plans to hold up to 75 per cent of equity shares in investment projects for up to seven years, extendable by a maximum of two years.” The fund would then exit by selling its share to co-owners or third parties or through initial public offerings."

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