The Activities of Venture Funds of Republic of Kazakhstan

Investment venture capital funds in Kazakhstan

Since Kazakhstan gained independence, the state on its territory have begun to operate, several investment funds. However, after the Russian financial crisis in August 1998 the situation changed dramatically. Some of the funds, despite the fact that they have already increased the amount of invested capital, withdrew after the crisis, the stock funds. Other funds that were at the time of a crisis at the stage of increase of capital, have since been eliminated or substantially away from the implementation of investment programs.

This article focuses on coverage of three investment funds active in Kazakhstan and of the highest professional status of foreign investors. Two of these are - Eagle Kazakhstan Fund (formerly GIMV Kazakhstan Post-Privatization Fund) and AIG Silk Road Fund, - funded by the European Bank for Reconstruction and Development (EBRD). Investment activity of the third - the Central Asian American Enterprise Fund - is carried out with funds provided by the Government of the United States.

These funds tend to carry investments in the development of small and medium-sized enterprises representing different types of production in Kazakhstan, and have similar bans on investing in the development of businesses related to gambling, the production of alcoholic beverages, tobacco and weapons. Funds tend to invest by establishing their own investment funds or a combination of equity and debt in the amount of 1 to 10 million U.S. dollars. Medium term investment projects of the period from 4 to 6 years in combination with various exit strategies of investment projects