Fund Terms and Fundraising Timeline

Fund Terms and Fund Fundraising Timeline

This document is indicative only. It should not be read in isolation but only in conjunction with the relevant legal/ constitutional documentation relating to the Opportunity. This document has not been verified and should be relied upon. This document does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service by Riviera Capital CJSC. 

Riviera Capital Armenia Diversified Fund I – Summary of Key Terms 

Fund Size:

$10M USD

Currency:

USD

Investors:

International and Diaspora Investors, Family Offices, Armenia Pension Funds

Structure:

Investment Fund regulated by Central Bank of Armenia

1st Closing:

Q1 2020

Strategy:

Growth, Turnaround, Greenfield investments

Style:

Investments in companies with significant growth potential and solid management teams; Active business building when necessary

Sector:

Diversified with focus on HoReCa, F&B, AG, Animal Husbandry/ Dairy/ Fisheries, RE, F/S, Energy sectors

Instruments:

Common equity, preferred equity, mezzanine debt, convertible debt

Co-Investment rights:

To be determined on a case by case basis; transaction fees split with Fund

Restrictions:

Private equity investments to be made solely in Armenia; no investment will be more than 20% of portfolio (at cost)

Target returns:

12-15% IRR (net) including targeted cash distributions of 5% starting Year 3

Investment Period:

3 Years

Fund Duration:

5 years (with two 2 year extensions)

Exits:

Industry (local and regional) sale, PE sale, MBO, Recapitalizations, IPO

Management Fee:

2.0% of Committed Capital for investors less than $1.0M
1.5% for investors above $1.0M

Performance Fee:

20%, with 8% soft hurdle rate and catch-up

Minimum Commitment:

$100 K

Armenia Diversified Fund I fundraising timeline is:

Pipeline Building:

June – December 2019

Fund Registration with Central Bank of Armenia:

November 2019

1st Closing (USD 3-4M):

Q1 2020

4-5 Investments (USD 3-4M):

2020

2nd Closing (USD 6-7M) at 10% premium:

Q1 2021

4-7 Investments (USD 6-7M):

2021