During 2019, subsidiaries of the Russian Venture Company (RVC), managed by the RVC Infrafund, left 28 venture projects. Total revenues from exits and remaining in the portfolio of companies exceeded 430 million rubles. Promised assets in fund portfolios rose by more than 90% over the year.
RVC subsidiaries were established between 2009 and 2013 to promote the formation of the Russian venture capital industry. The funds invested in more than 100 projects, most of which were in the early and early stages. In 2017, RVC developed a new development strategy, within the framework of which a decision was made to restructure and close RVC subsidiaries by the end of 2020. Fund management was transferred to RVC Infrafund. The new investment team, formed in Infrafund in 2018, was tasked with assessing the status and prospects of projects in the portfolios of subsidiary funds, getting out of troubled assets, and preparing the funds for closure.
After analyzing the companies, the Infrafund team divided the assets of its subsidiaries into a portfolio of companies with the potential for significant growth in value and a collection of distressed assets. Companies are identified in a separate group, the development of which does not allow multiple increases in the cost of investment funds. During 2019, eight transactions were completed to exit such companies. The ninth deal was closed in January 2020. All transactions have a positive financial result, and the average return on them amounted to 1.3X.
The implementation of a set of measures to terminate the participation of funds in the capital of doubtful companies and return the invested funds brought more than 150 million rubles at the end of 2019. To date, less than 60 companies remain in the portfolio of distressed assets. Within one year, procedures should be launched to exit the remaining portfolio. For at least 40 companies, they should be completed before the end of 2020.
The portfolio of promising companies includes ExoAtlet, Ubik, Alpina Holding, National BioService, and CGRM Genetico. According to Infrafund estimates, during 2019, the value of the portfolio almost doubled. Despite the impact of the consequences of the COVID-19 pandemic, companies still have good chances for further capitalization growth. The Infrafund team plans to continue to manage portfolio investments and support the development of companies from 2020 to 2024. At the same time, the sale of shares in these companies during the specified period is not ruled out.
RVC Infrastructure Investments LLC (RVC Infrafund) was established in 2011 to develop the infrastructure of innovative markets, allowing their participants to commercialize scientific and research activities effectively. RVC Infrafund is a subsidiary fund of RVC JSC and the managing organization of subsidiaries of RVC JSC: LLC FPI RVC, Biofund RVC LLC, Civil technology of defense industry complex LLC. During its existence, the funds have provided investments to more than 100 innovative projects.