Renaissance Investment Management has launched an equities fund to tap into the anticipated investment boom in Russian infrastructure. Renaissance, a subsidiary of Russia's leading investment bank, said the Russia Infrastructure Equities fund will raise between $150 million and $200 million. The fund will focus on a variety of sub-sectors, including building and construction, utilities, engineering & machinery, transportation, and communication and IT. The three-year close-ended fund will close on November 9. It will be listed on the Bermuda Stock Exchange and will be London Stock Exchange tradable. Fees will be 1.5 per cent for management with 20 per cent for performance. The fund is targeted at international institutional investors and will have a minimum investment of $1 million. Merrill Lynch has predicted that Russia will be the second largest country in the world after China for infrastructure investment over the next five years. It is estimated that up to $200 billion will be spent on Russia's creaking infrastructure in the next five years, excluding the oil and gas sector. Renaissance's head of alternatives Sergey Bubnov said: "There is an urgent need for investment following 15 years of under-investment, especially with the large construction projects needed for the 2014 Winter Olympic Games and the 2012 APEC Forum." Earlier this year, Renaissance agreed to set up a joint venture with Australian infrastructure specialist Macquarie to develop infrastructure advisory and fund management opportunities in Russia and the CIS countries.