Private Equity (direct investment) – a type of private equity investment made by a classic direct investment funds (DIFs) and captive DIFs with family offices/business conglomerates, i.e. professional investors.

Investors provide private companies with capital that can be used to finance new technologies, make acquisitions, increase working capital, etc., which subsequently leads to an increase in the value of the invested company.

The goal of private equity is to make profit after the closure of the fund, generally in 3-5 years, through the sale of portfolio companies.

The preferential equity financing program of Kazyna Capital Management JSC was launched in May 2019 in order to simplify business access to investments and increase the usage of equity financing. Terms of the program: interest rate of 8% per annum, investment size – up to 5 billion KZT for up to 10 years. KCM’s participation in financed companies is limited to 49% in the capital, which ensures that the entrepreneur retains control over the management of the company. The program is being implemented in two areas: support for corporate business and SMEs. The operators of the program are KCM’s subsidiaries – Baiterek Venture Fund JSC and BV Management LLP. The program is also implemented with partner banks: Sberbank, Bank CenterCredit and VTB Bank.

Yes, KCM conducts an external audit of financial statements on an annual basis.

The annual reports about KCM’s activities and the consolidated financial statements are disclosed in the “Reporting” section.

In July 2020, Fitch Ratings assigned Kazyna Capital Management JSC (KCM) Long-term Foreign and Local Currency Issuer Default Ratings (IDRs) of BB + with a Stable outlook. Fitch has also assigned a national scale rating to KCM “AA (kaz)”.

The rating reflects Fitch’s view of KCM’s strong ties to the Republic of Kazakhstan (“BBB”/“Stable” forecast/“F2”).

More details can be found on our website under the “Ratings” section.

The sole shareholder of KCM is Baiterek National Managing Holding JSC

Detailed information is disclosed in the “Sole shareholder” section.

KCM invests in perspective and strategically important private equity funds. The funds are focused on projects in various industries and geographies, which contributes to the diversification of the KCM portfolio and the reduction of potential risks. KCM’s share in the funds ranges from a minority stake to a controlling stake.

KCM funds use a wide range of private equity instruments to invest in companies with high potential, from simple equity participation to options for exit and mezzanine financing.

Today, KCM’s portfolio includes 15 funds with a total capitalization of more than 1 trillion KZT. These funds invest in projects of the non-resource sector of the economy.

Detailed information on KCM portfolio funds is disclosed in the “Investment Activity - Funds” section.

KCM along with the funds provide financial support to projects in the non-resource sector of the economy of the Republic of Kazakhstan.

KCM has financed more than 80 projects worth over 1 billion USD, mainly in Kazakhstan. These projects belong to the following industries: transport and logistics – 38%, energy – 22%, agriculture and food industry – 15%, chemistry and petrochemicals – 10%, paper and paper products – 10%, construction materials – 5%.

KCM creates private equity funds in partnership with international institutional investors and domestic private equity holders.

Detailed information is disclosed in “Partnerships” section.

• Sale of a shares to a strategic investor
• Sale of shares to other shareholders
• Placement of shares on the stock exchange (IPO)

Detailed information is disclosed in the “Invest with us” section.