Moscow. July 20, 2006.  Delta Private Equity Partners, manager of The U.S. Russia Investment Fund and Delta Russia Fund, L.P., announced today that it had sold its stake in SPAR Moscow Holdings, a chain of supermarkets in the Central Russia,to a private equity fund Renova Capital.

SPAR Moscow Holdings was established in 2000 by Delta Private Equity Partners and Dmitry Maslov, an experienced Moscow grocery distributor, to develop a chain of supermarkets in the Central regions of Russia under franchise from SPAR International, a Netherlands-based global retail franchiser with over 15.000 stores in 34 countries. In 2003, Delta sold part of its stake to a group of Russian private investors, who, with the existing management team, put the Company on a high growth path. Currently 62 supermarkets work under the SPAR name in Russia, including stores in Moscow, near Moscow, Kostroma, Vladimir, Tula, Penza, and Nizhny Novgorod. 

On July 20, 2006, Delta Private Equity Partners sold its remaining stake in SPAR Moscow to Renova Capital. The sale is Delta’s tenth successful sale of a company in its private equity portfolio in the last two years, including the sale of SPAR Middle Volga, a similar, well-managed chain of supermarkets in the Volgo-Vyatsky region, in 2003 with a substantial return. Delta created and financed both SPARs in view of the large potential in Russia’s consumer goods and services markets. Typical of new ventures, Delta Private Equity took the first risk, and, in exiting now, transfers ownership for the next stage of the Company’s growth and development.

Commenting on the deal, Paul Price, Managing Director of Delta Private Equity Partners, said "Renova Capital’s purchase was excellent for both parties, providing both Delta with a healthy return on its capital for the risk it took at start-up and the company with the capital it needs to continue to grow in Russia".

Oleg Tsarkov, Managing Director of Renova Capital, added “The purchase of a stake in SPAR is a logical result of the Fund’s interest in the consumer market. SPAR has all ingredients needed for a successful growth, including a fast growing market, a professional management team, a highly demanded retail format and a clear strategy of further development. The company plans to actively develop international SPAR brand in the regions of the Central Russia, and Renova Capital as a shareholder will definitely contribute to SPAR’s dynamic growth.”