ENR is an investment company which is listed on the SIX Stock Exchange. It is also a member of the Swiss Association of Investment Companies.
Since 1996, ENR has invested in private equity, real estate, listed equities and fixed income instruments of business operating in the Russia. ENR has also made investments in entities based in other countries of the Commonwealth of Independent States.
Private equity investments
The main investment focus is on Russia. It is the largest country in the world by landmass (+/- 17 million square kilometers); the largest consumer market and population in Europe (+/- 145 million people); has the largest natural gas reserves and gas exports in the world; is one of the largest crude oil and refined petroleum products producers; large Gross Domestic Product (top 10 – 15 in the world); a strong country balance sheet where external debt measure against GP is below 15% and Russia’s foreign reserves are in excess of USD 500 billion (4th largest in the world) ; many interesting infrastructure development projects and good economic fundamentals and growth potential.
We invest in Russian businesses with products and/or services substituting imported products (for example, consumer businesses in stable and growth segments of the economy) as well as quality real assets generating healthy cash flow generation. Selectively, we will also consider business with support services or products linked to infrastructure development projects. Our investment focus is long term. We actively support and help management teams to develop and grow the businesses we invest and to improve profitability and cash flow generation (and optimise financing and capital structures).
Typically our investments range between CHF 5 million and CHF 10 million (pre-leverage). However, our investments can also be larger or smaller, depending on the particular investment opportunity and ongoing funding requirements for the business we invest in.
We will only invest if we are able to partner with strong and committed management teams and, where appropriate, with strong and reliable local partners. We take controlling or large minority interests in businesses (for minority interests we have protections built into the charter or by-laws of the companies we invest in and in the shareholders agreements). We take-up board representation where we play an active role and make sure we have meaningful oversight of accounting and reporting functions and cash management.
On exited investments we have generated internal rates of returns ranging from 17% to 83% and 1.8 times to 9.2 times on a cash on cash basis for invested capital (see section – Our Track Record).
Listed equity investments
From time to time we also invest in listed equities of mainly large listed Russian companies where we usually have a mid-term investment horizon.
Fixed Income investments
At times when our cash resources have not been not fully invested in private equity and/or listed equities, we invest in fixed income investments in large listed Russian companies (usually investment grade) where we have a shorter investment horizon to maximize returns on our cash resources.