Major investment funds enter Georgian market

Georgia’s Partnership Fund is establishing cooperation with Canadian, American, French, Dutch and US investors. Photo by the PM's press office., 29 Sep 2016 - 12:35, Tbilisi,Georgia

Several large international investment funds will soon invest significant sums of money in Georgia to support the country’s development across various sectors of the economy.

At today’s Governmental meeting Georgia’s Prime Minister Giorgi Kvirikashvili spoke of the new cooperation between Georgia’s state-owned shareholding company the Partnership Fund and major investment funds, and of the "important agreements” the PF was about to sign.

When all the deals are penned, several large investment funds will begin operating in Georgia and support local development projects.

Kvirikashvili said for the first time the PF will invest in an international consortium that focuses on supporting small and medium-sized enterprises (SMEs) in Georgia, announced the PM’s press office today.

Prime Minister shared this news with his followers on his official Twitter account:

Additionally, the PF will partner with the Canadian investment fund – the Gazelle Finance fund. The initial capital of the Gazelle Finance Fund will be $27.5 million USD however its investment amount will increase by $70 million.

The Gazelle Finance website says the institution is in the final stages of fundraising for a special purpose investment fund targeting four countries in the region: Georgia, Armenia, Kyrgyzstan, and Moldova.

Gazelle Finance expects to close the fund later in this year (2016) and is positioned to launch investment operations immediately thereafter," said the Fund's website.

The PM’s press office said the Gazelle Finance would finance projects in the wider region however it had chosen Georgia as its regional hub where the Fund will spend 60 percent of its capital.

This is a very important factor that the … Gazelle Finance chose Georgia as its place of operation. Also partners of the [Gazelle Finance] Fund include Dutch state-investment fund, the Dutch Good Growth Fund (DGGF) and the Netherlands Development Finance Company (FMO),” said Kvirikashvili.

Also today the PM told how the PF was helping fund projects in Georgia’s energy sector.

Already the PF had agreed with US investment group Schulze Global Investments to support Georgia’s development, and was currently negotiating with European investment groups to also support Georgia’s energy-related development projects.

Schulze Global Investments is a very serious international financial fund that is going to enter Georgia. Together with the Partnership Fund, it will invest in Georgia,” announced Kvirikashvili today.

He added "in the nearest future” the Partnership Fund planned to work with two large investors – the Maclellan Foundation from the US and French investor Dominique Romano – who will each pledge to invest $10 million in Georgia.