Rusnano

RUSNANO Management Company is a leading Russian private equity investor in technology-enabled businesses. RUSNANO Management Company is a spin-off of the largest Russian sovereign high-tech fund RUSNANO JSC, a part of the RUSNANO GROUP, and was created in 2013 to separate ownership and management of RUSNANO JSC assets.

Assets Under Management (AUM)

RUSNANO Management Company started in 2013 with combined value of assets under management at ~$3 billion and 107 tech portfolio companies, operating in Russia, US, Western Europe, and Israel. Currently RUSNANO Management Company AUM exceed $4 billion, as of December 31, 2018.[11]

Private Equity and Venture Capital Funds

The company manages 8 Growth Capital and Venture Capital Funds and raised over $1,5 billion from Russian and international private and governmental investors with leverage ratio 1:3 from RUSNANO JSC to third-party investors, respectively. These funds are highly diversified by stage, sector, and geography diversifying risks and potentially creating additional value for investors.

Investment Strategy

RUSNANO Management Company invests in projects with high potential in the real economy sector in Russia and abroad with subsequent expansion to Russia (technology transfer to Russia/creation of manufacturing site and/or R&D center) or Russian technology transfer to foreign companies. Basing on significant investment experience and advanced technical expertise RUSNANO Management Company acquires equity in innovative ventures and growth-oriented companies with scalable business models and significant growth potential.

The following hi-tech fields are of primary interest to RUSNANO Management Company:

• New Materials (Nanomaterials)
• Nanoelectronics and Photonics
• Biotechnology and Pharmaceuticals
• Coatings and Surface Modification
• Renewable Energy and Energy Efficiency
• Nuclear Medicine and Medical Devices/Instrumentation

Notable Portfolio Companies

New Materials:

• OCSiAl is the first Russian Unicorn, listed on Crunchbase Unicorn Leaderboard with a $1 billion valuation.[13] The company's core product is TUBALL, high-purity graphene nanotubes that can be used as a universal additive for a wide range of materials.
• Monocrystal PLC[14] is the leader in the world market of synthetic sapphires used in light emitting diodes, smartphones, tablet PCs and smart watches, for glasses of cameras, sensors of fingerprints as well as displays.[15]

Renewable Energy:

• RUSNANO, together with the Finnish public power company Fortum on a matching funds basis, created the Wind Energy Development Fund (WEDF), with a legal status of an investment partnership, and capital of $520 million. Ninety percent of Fund's investments are aimed at construction of wind parks in Russia and in projects for localizing production of wind power equipment.
• Hevel Solar[16] is one of RUSNANO's portfolio companies in renewable energy sector. In 2009, RUSNANO invested nearly $400 million in the company. Now Hevel markets itself as Russian largest integrated solar energy company. Its key activities are focused on manufacturing of solar modules, construction, and operation of solar power plants and research in the field of solar energy.[17]

Nanostructured Coatings:

• Novomet Group[18] is recognized as a leader in production of oil-submersible equipment, which is highly reliable and is intended for use in challenging conditions. Novomet's pumps owe their competitive advantage to their nanocoating—the result of the use of powder metallurgy technology.[19]

Healthcare:

• The national network of nuclear medicine, PET-Technology, founded 11 operational diagnostic PET/CT centers in the regions of central Russia. PET-Technology network has a 50% share of the Russian PET/CT diagnostic market and is a leader in providing diagnostic services among private players.[20]

Team

RUSNANO Management Company has solid expertise in growth and venture capital investments. Anatoly Chubais is the CEO of RUSNANO Management Company.

In early 2019 Russian government extended the power of RUSNANO Management Company to manage the assets of RUSNANO JSC for a new 10-year term.

Offices

RUSNANO headquarters is located in Moscow (Russia), with additional US and Israeli sub-offices.

RUSNANO JSC is the major backbone of RUSNANO Group, is part of Russian system of developmental institutions (institutional innovation pipeline). The company was established in 2011 during reorganization of Russian Corporation of Nanotechnology.[5] RUSNANO JSC main objective is to becoming a global Russian technology investor specializing in investment in competitive Russian and foreign companies implementing promising nanotechnology-based innovations in various fields.[21]

Development role

By late 2018, over a 100 portfolio companies including 97 high-tech enterprises have been put into action in the real sector of Russian economy, leading to creation of approximately 39 000 jobs in various high-tech fields. Moreover, RUSNANO's portfolio companies have contributed 132 billion rubles to Russian budget. These payments have already exceeded initial investments made by the Russian government to create the RUSNANO Group.[22]

RUSNANO portfolio companies invested 42,5 billion rubles into R&D. Over the years, around 6000 inventions, prototypes, IPs and trademarks were created by RUSNANO-funded companies.[23]

Financial results

Based on the consolidated financial statements of RUSNANO, based on International Financial Reporting Standards (IFRS) in 2018, the company generated a record net profit of 5,6 billion rubles[22][23] which was achieved due to an increase of 14,9 billion rubles in the fair value of the investment portfolio, almost two times greater than in 2017.[24]

RUSNANO's total assets by the end of 2018 amounted to 185,5 billion rubles, which represents 17,1 billion rubles increase compared to 2017.[25]

Governing Bodies

JSC RUSNANO is governed by the Board of Directors[7] appointed by Russian Government. JSC RUSNANO's Board of Directors appoints Science and Technology Council[26] carrying out preliminary assessment of projects and providing recommendations on their financing by RUSNANO, and reviewing reports on supported portfolio projects. RUSNANO's Strategic Committee is also appointed by the Board of Directors. RUSNANO Management Company is managing all JSC RUSNANO's assets.

Fund for Infrastructure and Educational Programs (FIEP) is a non-profit arm of RUSNANO Group managing various projects targeting creation of innovative nanotechnology-related ecosystem in Russia. FIEP is governed by a Supervisory Board,[27] the supreme collegial body determining strategical goals and budgeting and the Executive Board responsible for program management and daily activities of the Fund. FIEP is operating in the number of important areas, such as education, R&D, infrastructure and promotional activities.