Q&A with RDIF's Kirill Dmitriev

The Russian Direct Investment Fund, the sovereign wealth fund established in 2011 to make equity investments in the Russian Federation, announced this week that it had teamed up with Abu-Dhabi’s department of finance to create a joint venture to invest in Russian infrastructure.

 The $5 billion contribution from the Abu Dhabi department of finance is the largest investment from the Middle East ever made into Russia, according to Kirill Dmitriev, chief executive of the RDIF, who spoke to Private Equity News, sister publication of Financial News, about the joint venture.

Five questions five years on from Lehman

Financial News has this week been asking high-profile names from the world of finance – including Larry Fink, Michael Tory and Ed Bonham Carter – about their memories of the US bank's collapse in September 2008.

The fall of Lehman Brothers in mid-September 2008 was the spark that inflamed the financial sector and the banking industry, paving the way for a full-blown crisis.

Egypt funds slump 40% in run up to clashes

Investors in Egyptian equities have seen the value of some funds fall by almost 40% over the last three years

The country was one of the first in the Middle East and North Africa to play host to government protests that would eventually spread across the region and become known as the Arab Spring. Demonstrations had remained largely peaceful – former president Hosni Mubarak’s government was ousted in 2011 – but violent clashes erupted last week between the country’s military and protesters loyal to his recently-ejected successor Mohamed Morsi.

Sun shines on real estate deals

Summer fun in the real estate sector is paving the way for an even more dramatic revival in activity later this year.

The volume of deals has already proved lucrative, attracting $369 million in investment banking fees in Europe, the Middle East and Africa, according to Dealogic, in the year to date. This compares with $225 million over the same period a year ago. Real estate analysts are confident the pace will accelerate.

Lord to replace Linhares at iShares

Joe Linhares, BlackRock’s head of iShares in Europe, the Middle East and Africa, is stepping down from his role and will be replaced by Rachel Lord, Citigroup’s global head of corporate equity derivatives, Financial News has learnt.

Lord to replace Linhares at iShares Linhares will return to the US to take on an undefined role that will be confirmed in “autumn”, according to an internal memo from David Blumer, head of Emea at BlackRock, and Mark Wiedman, global head of iShares. A spokesman for the world’s largest fund manager confirmed the contents of the memo but declined to comment further.

UK pensions giant backs auditor shake-out

The Universities Superannuation Scheme, the UK’s second-largest pension scheme and an advocate of audit reforms, has welcomed steps taken by the country’s Competition Commission to loosen the stranglehold of the Big Four.

 

The UK Competition Commission this morning proposed to increase the frequency of audit tendering by FTSE 350 companies but stopped short of requiring them to change firms regularly.

Under the proposed rules, FTSE 350 firms will have to re-tender their audit work every five years. The Financial Reporting Council, the UK’s corporate governance regulator, currently says firms must do this every 10 years or explain why they are not doing so.

Banks to find creativity stifled on 'whacky' pay

Banks to find creativity stifled on 'whacky' pay

 Pay consultants in the City of London said investment banks would be hard pressed to find imaginative ways of offsetting the impact of incoming European Union rules on bonuses, after a report from the consultancy Mercer hinted banks could be getting creative.

 Under the rules, which come into force next year, banks will have to cap bonuses for their highest earners at no more than 100% of fixed salary, or 200% given shareholder approval.
A survey of 78 financial services organisations published today by Mercer suggested that banks were looking at “creative compensation alternatives” as well as base salary increases in order to maintain the high levels of rewards for top bankers.