Zubr Capital

Investment Strategy

The key point of Zubr Capital investment strategy is to utilize what may be considered as unique opportunities that are currently emerging in Belarus for private equity investments:

  • There are over 250 state enterprises in non-strategic sectors of economy which may be considered as the privatization targets. These enterprises include efficient manufacturing enterprises with the potential of business value growth.
  • The creation of the Common Economic Space (CES) between Russia and Kazakhstan opens up unique opportunities for Belarusian companies to export Belarusian products to the huge market of 168 million consumers with growing personal incomes and a growing middle class. Thus, Zubr Capital is focused on the whole CES market (Russia, Belarus, Kazakhstan).
  • At the CES market there is a gap between cheap Chinese products and expensive products of the Western manufacturers. This gap can be filled up by Belarusian products.
  • High production culture in Belarus. The country possesses significant workforce with high level of education as well as the reserve of engineering and technical personnel, who can be trained to work with new technologies and operate new manufacturing processes. Comparing to other Eastern Europe countries, the labor cost in Belarus remains low. Belarus has good chances to become “assembling department” for Russia, Eastern Europe and the EU countries.

Target Return: Fund LPs IRR > 25%
Key Purpose: establishment of efficient large-scale enterprises that will be attractive for strategic investors or will correspond to the IPO criteria.

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