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LetterOne

LetterOne Holdings S.A. (L1) is a Luxembourg-based investment firm founded in 2013, focusing on long-term, active investments in the , , , and retail sectors. Established by entrepreneurs , , , , and Andrei Kosogov—former partners in —following the sale of their stakes in oil major , the firm deploys its own capital to acquire and develop undervalued businesses with significant growth potential. LetterOne manages net assets valued at over $18 billion, supporting operations that employ more than 125,000 people globally through holdings such as the retailer and stakes in telecommunications and companies. The firm's strategy emphasizes entrepreneurial management and sustainable value creation, with business units including L1 Energy, L1 Technology, L1 Health, and L1 Retail, alongside liquidity management via L1 Treasury. Notable achievements include major acquisitions like the German energy firm DEA and expansions in European retail, though recent years have seen portfolio adjustments, such as the transfer of Wintershall Dea upstream assets to Harbour Energy in 2024. In 2022, Western sanctions targeting several founders over alleged Kremlin links prompted resignations from the board and operational hurdles, including blocked dividend distributions totaling around $300 million and a UK-mandated divestment of broadband provider Upp on national security grounds, despite the firm's assertions of independence and donations exceeding $150 million to Ukraine war victims.

Origins and Development

Founding and Initial Capital

LetterOne was established in 2013 as a Luxembourg-based international investment firm by Russian billionaires , , , and Alexei Kuzmichev, principals of the consortium, to deploy capital from the divestment of their Russian energy holdings into global opportunities across energy, retail, telecoms, and other sectors. The firm was structured with dedicated business units, such as L1 Energy for upstream oil and gas investments, reflecting the founders' intent to build a diversified portfolio outside . The primary source of LetterOne's initial capital stemmed from the 2013 sale of the founders' stakes in , Russia's third-largest oil producer, to state-controlled , yielding approximately $14 billion in proceeds to the partners involved. This transaction, one of the largest deals in valued at around $55-56 billion overall, provided the cash foundation for LetterOne's launch, with funds received in phases including a key transfer in March 2013. Portions of these proceeds were earmarked for investments, enabling early moves like the acquisition of stakes in gas assets. By late 2013, LetterOne's assets under management had expanded to roughly $29 billion, incorporating the cash alongside transferred non-energy assets such as holdings from the founders' broader Alfa ecosystem, which added about $13.5 billion in value. This blend allowed the firm to pursue a balanced , with managed through a dedicated treasury unit to support opportunistic deployments. The structure emphasized long-term value creation through active management rather than passive holding, drawing on the founders' experience in building from banking to energy conglomerates.

Key Early Investments and Growth Phase (2010-2021)

LetterOne was established in January 2013 in as a privately owned firm, primarily funded by proceeds from the sale of to for approximately $28 billion, which provided the founders—, , , Andrei Kosogov, and —with substantial capital for long-term investments outside . The firm initially concentrated on sectors including , , and , aiming to acquire undervalued assets and foster growth through active management. By focusing on buy-and-build strategies, LetterOne sought to leverage the entrepreneurs' expertise from to create value in mature industries. Early investments emphasized , with LetterOne assuming significant stakes in established operators. In 2013, it became a key investor in (formerly VimpelCom), supporting the company's expansion in emerging markets amid restructuring efforts. Similarly, LetterOne secured a substantial economic interest in , 's leading mobile operator, building on prior involvement; by 2015, this stake represented around 13-15% of the company, with ongoing acquisitions increasing it to over 50% economic exposure through complex shareholding structures by 2020. These holdings provided exposure to high-growth digital services in data and , despite regulatory disputes in that delayed full control until 2019. In the energy sector, LetterOne launched L1 Energy in 2015, marking a pivot to upstream oil and gas opportunities. A flagship move was the acquisition of Deutsche Erdoel AG, a exploration and production firm, for €5.1 billion in October 2015, which expanded LetterOne's European footprint with assets in the , , and . However, geopolitical sensitivities prompted the divestment of assets to for $300 million shortly after, amid concerns over . Complementary investments included smaller stakes in undervalued fields, setting the stage for DEA's growth through onshore acquisitions like the Ogarrio field in . Technology investments diversified the portfolio, with a notable $200 million commitment to Technologies in February 2016, capitalizing on the ride-hailing disruptor's global scaling phase. This aligned with LetterOne's strategy of backing innovative platforms in consumer tech. By the end of 2021, the firm's equity had grown to $26.8 billion, reflecting compounded returns from operational improvements, asset appreciation, and selective expansions across its units, despite challenges like regulatory blocks on retail bids (e.g., a failed 2014 approach for stakes). The period solidified LetterOne's transition from a post-exit to a proactive global investor, with over $10 billion deployed by mid-decade into core holdings that generated steady cash flows and positioned it for further scaling.

Adaptations to Geopolitical Shifts Post-2022

In response to the commencing on February 24, , which prompted EU and sanctions against co-founders and in March , LetterOne implemented structural changes to its and operations to mitigate risks and maintain from sanctioned individuals. The firm froze the founders' shareholdings, preventing any benefits or dividends from accruing to them, and Fridman and Aven resigned from the board alongside three other directors. These measures, including revised , ensured no control or economic interest by sanctioned parties, as affirmed in subsequent regulatory approvals. LetterOne's declined by approximately 30% in due to the sanctions' ripple effects on and asset valuations. To distance itself from the conflict, LetterOne announced a $150 million donation on March 7, 2022, directed toward for Ukraine war victims, sourced from shareholder contributions rather than operational funds. The firm publicly condemned the through statements in its annual reviews, emphasizing that sanctions should target war supporters rather than broader business figures, while Fridman himself criticized the military actions as a "tragic mistake" in February 2022. Despite these steps, LetterOne faced ongoing regulatory scrutiny; in November 2024, a court upheld a order requiring from telecoms firm Upp, rejecting procedural unfairness claims related to a post-invasion review initiated in May 2022. Post-sanctions, LetterOne pursued new investments with explicit regulatory licenses to navigate ownership restrictions. On September 4, 2024, it completed the acquisition of a 14.87% stake in , the 's largest oil producer, following UK Office of Financial Sanctions Implementation approval; these non-voting shares could convert to voting rights only if sanctions on Fridman and Aven are lifted. By 2025, amid persistent founder sanctions, the firm set aside $300 million in blocked dividends attributable to the duo's frozen holdings, underscoring ongoing financial adaptations without distributing benefits to sanctioned entities. These actions reflect a strategy of operational continuity in Western markets, reliant on legal separations from founders, while annual reports express cautious optimism for potential sanctions relief in 2025 to restore full shareholder dynamics.

Investment Portfolio

Energy and Natural Resources

LetterOne's energy investments are managed through its L1 Energy division, established to focus on upstream oil and gas exploration and production. In 2019, LetterOne merged its oil and gas assets with those of 's division and RWE's , forming , a in which LetterOne held a 33% stake and 67%. This entity operated assets primarily in , , , and the , with production centered on and crude oil. Wintershall Dea maintained a portfolio emphasizing low-emission production, with significant reserves in Norway's , the , and , alongside international holdings in , , , , and . By 2023, amid Russia's invasion of and related asset freezes, Wintershall Dea faced challenges with its Russian operations, which accounted for a portion of its reserves but were subject to economic expropriation. In December 2023, , LetterOne, and agreed to transfer Dea's non-Russian upstream assets to Harbour in a $11.2 billion deal comprising cash and shares, completed in 2024. As part of the transaction, LetterOne received approximately 15% of , the United Kingdom's largest independent oil and gas producer, with operations focused on the and integrated into the acquired portfolio. This shift positioned LetterOne's energy exposure toward Harbour's assets, including offshore production in the UK, , and , while retaining value recovery efforts for divested Russian holdings. Beyond traditional hydrocarbons, L1 Energy has pursued selective new energy ventures, such as a 2021 investment in , a chemical firm converting plastic waste into fuels and virgin-like plastics, aligning with efforts to address through advanced technologies. LetterOne's natural resources portfolio remains predominantly hydrocarbon-centric, with no disclosed major stakes in mining or renewables as of 2024.

Retail and Consumer Sectors

L1 Retail, the retail investment arm of LetterOne, focuses on long-term holdings in consumer-facing businesses, managing net assets of $1.6 billion as of December 31, 2024. Its strategy emphasizes building sustainable retail platforms through acquisitions and operational improvements, targeting sectors like health and wellness and grocery distribution. A flagship investment is , Europe's largest health and wellness retailer, founded in 1870 and operating over 1,000 stores primarily in the , , the , and . L1 Retail acquired full ownership of the company in June 2017 for £1.77 billion ($2.25 billion) from The Nature's Bounty Co. and . Under LetterOne's ownership, the retailer has expanded its product range in vitamins, supplements, and natural foods, maintaining a focus on physical storefronts amid shifts. In the grocery sector, LetterOne holds a controlling stake in DIA, Spain's third-largest supermarket chain by store count, with approximately 2,500 outlets mainly in Spain and smaller operations in Portugal and Argentina as of 2024. The firm began building its position in 2017 with an initial 3% stake purchase and an option for an additional 7%. By 2019, amid DIA's financial distress, LetterOne launched a takeover bid that increased its ownership to around 70%, accompanied by a €490 million ($546 million) loan and debt extension agreements to stabilize operations. Cumulative investments reached €2.4 billion by 2020, supporting a restructuring that refocused DIA on its core Spanish market and improved profitability. In January 2025, DIA secured €350 million in new financing to refinance €885 million in debt, reflecting ongoing efforts to enhance liquidity and efficiency. As of recent reports, LetterOne controls about 78% of DIA, enabling strategic decisions like store optimizations and private-label expansions despite competitive pressures in discount grocery retailing.

Telecommunications and Technology

LetterOne's L1 Technology unit oversees investments in telecommunications and related technology sectors, with net assets of $2.5 billion as of December 31, 2024, up from $1.5 billion in 2023. The portfolio emphasizes long-term growth in connectivity, digital platforms, software, and data services, primarily targeting opportunities in the , , and (EMEA) region. A core holding is a 47.85% stake in Ltd., a provider of mobile and fixed-line services across emerging markets including , , , , and . In fiscal year 2024, generated revenue of $4.0 billion, an 8.3% increase year-over-year, and EBITDA of $1.7 billion, up 4.9%. The company's shares rose 130% from January to December 2024, contributing $1.38 billion to L1 Technology's assets under management; relocated its headquarters to in 2024 and planned a listing for its Ukrainian subsidiary . LetterOne also maintains a 19.8% stake in İletişim Hizmetleri A.Ş., Turkey's largest mobile operator offering converged voice, data, TV, and enterprise services. Turkcell reported fiscal 2024 revenue of 166.7 billion Turkish lira (up 7.8% year-over-year) and EBITDA of 69.8 billion Turkish lira (up 10.2%), with shares increasing 27% over the year and accounting for $1.155 billion in L1 Technology's assets. In January 2025, Turkey's sovereign wealth fund explored acquiring this minority stake. Earlier investments include a strategic stake in Qvantel, a Finnish provider of cloud-based business support systems (BSS) and operations support systems (OSS) for telecom operators, acquired in October 2016 to enhance digital transformation capabilities. In January 2021, L1 Technology acquired 100% of Upp Corporation Ltd., a UK-based firm planning a £1 billion full-fiber broadband rollout to one million premises, but divested the asset in September 2023 to Virgin Media O2 for less than the £143.7 million invested, following a UK government order under the National Security and Investment Act citing security risks.

Healthcare and Impact Investments

L1 Health, the healthcare investment division of LetterOne, focuses on building and scaling platforms that leverage global trends to transform healthcare delivery and improve patient outcomes. It deploys approximately $3 billion in evergreen capital across economic cycles, taking minority stakes to full control positions in partnership with entrepreneurs and executives. As of December 31, 2024, L1 Health managed net assets of $2.0 billion. Key investments include the October 2019 acquisition of , a platform providing comprehensive pet healthcare services across the United States and Europe. In October 2021, L1 Health partnered with to acquire , a Cyprus-based pharmaceutical manufacturer specializing in generic drugs and APIs, and , a Turkish generics producer; LetterOne assumed sole ownership of both in 2023. Additional commitments encompass , a venture capital fund targeting early-stage healthcare innovations. These holdings emphasize operational enhancements and targeted expansions, with 2024 activities yielding robust performance through governance strengthening amid external pressures. LetterOne's impact investments, channeled through L1 Impact, prioritize scalable financial returns paired with measurable social and environmental outcomes. This arm allocates capital to select venture capital and private equity funds focused on impact-driven enterprises in healthcare, financial inclusion, and sustainability. Healthcare remains a core pillar, supporting innovations that address underserved needs while pursuing profitability. The 2025 L1 Impact Report underscores a dual-mandate approach, emphasizing funds that deliver both economic viability and positive externalities.

Leadership and Governance

Founders and Major Shareholders

LetterOne was established in 2013 by Russian businessmen Mikhail Fridman, Petr Aven, German Khan, and Alexei Kuzmichev, who channeled proceeds from the sale of their stakes in the oil company to Rosneft into the new investment vehicle. The founders, previously key figures in the consortium, aimed to diversify their investments beyond Russia into global sectors such as energy, retail, and telecommunications. The ownership structure reflects the founders' dominant stakes, with Fridman and Aven collectively holding just under 50% of the company as of 2022. Specifically, Fridman effectively controlled a 37.9% shareholding in the group's holding entity, per a 2024 UK court judgment examining sanctions compliance. Khan and Kuzmichev, the other co-founders, held the remaining significant portions among the original partners, though exact breakdowns beyond the Fridman-Aven bloc are not publicly detailed in recent filings. No external institutional investors or public shareholders dilute these holdings, maintaining the firm's private, founder-centric control. Following Western sanctions imposed on Fridman, Aven, Khan, and Kuzmichev in early 2022 amid Russia's invasion of Ukraine, the quartet resigned from operational roles and board positions to insulate the company from regulatory pressures. Ownership stakes were not divested; instead, LetterOne restructured governance, appointing independent directors and segregating sanctioned shareholders' influence over decisions, while setting aside funds like $300 million in undistributed dividends blocked by sanctions as of August 2025. This arrangement has enabled continued operations, including recent acquisitions such as a near-15% stake in Harbour Energy in 2024, despite ongoing scrutiny of the founders' ties.

Board of Directors and Executive Team

LetterOne maintains two separate boards of directors: one for , overseeing L1 Energy and New Energy investments, and another for LetterOne Investment Holdings SA, managing L1 Technology, L1 Treasury, L1 Health, L1 Retail, L1 Impact, and fund investments. Each board consists of one executive director and eight independent non-executive directors, comprising nationals from the EU, UK, and Switzerland, with decisions made by majority vote and no veto powers held by shareholders. The boards meet quarterly in Luxembourg and are supported by committees including Audit, Risk & Compliance; Nomination; Remuneration; and Sustainability. Following EU sanctions on its Russian founding shareholders in early 2022, which prompted the resignation of Mikhail Fridman, Petr Aven, German Khan, and Andrey Kosogov from the board, LetterOne overhauled its governance to exclude sanctioned individuals and appoint independent directors with sector expertise. Lord (Mervyn) Davies of Abersoch serves as non-executive chairman of both boards, bringing experience as former UK trade minister, CEO of Standard Chartered Bank, and chairman of the UK government's low pay commission; he has focused on positioning LetterOne as a leading international investment firm through disciplined capital allocation. Jonathan Muir acts as the executive director and chief executive officer across the group, with prior roles as managing partner at EY and current chair of the audit committee at Bank of Georgia PLC, overseeing strategy, investments, and operations. Key non-executive directors include Franz Humer, former CEO of Roche and Novartis, who chairs HMNC Holding Brain Health and advises on biotechnology; Linda Wilding, with expertise in finance and compliance; and Alex Gourlay, executive chair of Holland & Barrett and former co-COO of Walgreens Boots Alliance. Additional independent directors such as Richard R. Burt and Wulf von Schimmelmann contribute diplomatic and financial oversight, ensuring alignment with international regulatory standards amid post-sanctions scrutiny. The executive team extends to sector-specific managing partners, including Stefan Linn as CEO of , focusing on healthcare investments, and Tim Summers as managing partner of , directing natural resources and renewables strategies. Operational leaders include Jonathan Tubb as group chief financial officer and chief of staff, and Ed Williams as managing director and operating partner, supporting portfolio execution and compliance. This structure emphasizes professional management insulated from founder influence, with enhanced sanctions screening achieving full compliance by 2024.

Controversies and Regulatory Issues

Sanctions on Founders and Operational Impacts

In response to Russia's full-scale invasion of Ukraine on February 24, 2022, the European Union imposed asset-freezing sanctions on LetterOne co-founders Mikhail Fridman, Petr Aven, and German Khan on March 15, 2022, citing their alleged roles in providing financial support to the Russian government and proximity to President Vladimir Putin. The United Kingdom followed suit on March 15, 2022, sanctioning Fridman and Aven for similar reasons, while the United States designated all three, along with Alexei Kuzmichev, under Executive Order 14024 on August 11, 2023, targeting Russian financial elites linked to Alfa Group. Fridman and Aven, who together hold less than 50% of LetterOne, publicly opposed the invasion and resigned from the company's board on March 2, 2022, prior to the EU measures, with three non-sanctioned co-founders (including Andrey Kosogov) also stepping down to sever operational ties. LetterOne itself has not been directly sanctioned, as its ownership structure dilutes control by any single blocked person below the 50% threshold under relevant regimes. The sanctions triggered immediate governance and financial disruptions at LetterOne, including the freezing of the founders' shares and suspension of dividend payments to them, resulting in approximately $300 million in undistributed profits set aside as of August 2025. Assets under management fell sharply from $25 billion at the end of 2021 to $18.7 billion by December 31, 2022, attributed directly to the sanctions' chilling effect on investor confidence and capital flows. Operationally, heightened regulatory scrutiny led to mandatory divestitures, such as the UK government's November 2024 order—upheld against legal challenge—forcing LetterOne to unwind its 2021 acquisition of a 25.1% stake in UK broadband provider Upp Technology due to national security risks tied to Russian ownership influence, despite the firm's compliance efforts. Conversely, permissions were granted for select transactions, including a September 2024 acquisition of a 14.87% stake in Harbour Energy, the UK's largest North Sea oil producer, after assurances of no founder involvement or profit flow. Legal challenges to the sanctions have yielded mixed results, with the EU General Court annulling the initial designations against Fridman and Aven on April 10, 2024, for insufficient evidence of direct support, though the Council reimposed measures pending appeal, maintaining their frozen status. Khan's sanctions were upheld in September 2024. These restrictions have imposed ongoing compliance burdens, including robust internal procedures to block sanctioned-party transactions, but have not halted core operations, with emphasizing its independence and donating $150 million to Ukraine humanitarian aid in March 2022. The firm has argued that such sanctions inadvertently deter non-Russian capital from European markets, exacerbating economic fragmentation without targeting assets directly.

Legal Challenges and Government Interventions

In March 2022, following Russia's invasion of Ukraine, the UK government imposed sanctions on LetterOne's founders Mikhail Fridman and Petr Aven, citing their alleged proximity to the Russian government. These personal sanctions, while not directly targeting LetterOne, prompted heightened scrutiny of the firm's investments under the National Security and Investment Act 2021 (NSIA), which empowers the Secretary of State to review acquisitions for potential risks to national security. LetterOne's founders resigned from the board in response, freezing their shares and donating funds to Ukraine-related causes, but retained beneficial ownership, raising concerns about indirect influence. A key government intervention involved LetterOne's 2021 acquisition of Upp Corporation, a UK fibre broadband provider, which the government called in for NSIA review in May 2022. In December 2022, the Secretary of State issued a final order requiring full divestment, determining that residual risks persisted due to the firm's ultimate beneficial owners potentially enabling influence over despite mitigation proposals like limited board representation. LetterOne complied by selling Upp to Virgin Media O2 in September 2023, incurring reported losses, but launched a judicial review in January 2023, arguing the decision was irrational, procedurally unfair, and discriminatory compared to other investors. The High Court dismissed LetterOne's challenge on November 20, 2024, marking the first judicial review of an NSIA final order and affirming broad executive discretion in national security matters. The court held that the Secretary of State's assessment of risks—rooted in the opacity of ownership structures and potential leverage by the Kremlin—was rational and not Wednesbury unreasonable, rejecting claims of inadequate reasoning or failure to consider alternatives. It emphasized deference to government expertise, noting that judicial review tests process rather than merits, and found no of or extraneous considerations. Separate interventions included the UK Competition and Markets Authority's (CMA) July 2022 block of 's participation in a consortium bid for , primarily on competition grounds but amid post-invasion sensitivities over foreign ownership in food supply chains. While not an NSIA matter, the decision highlighted regulatory wariness toward 's structure. No successful legal challenges by have overturned these actions, underscoring the high threshold for contesting national security or competition rulings tied to geopolitical risks.

Broader Criticisms and Company Responses

Critics have raised concerns over LetterOne's continued operations and investments despite its founders' ties to sanctioned Russian oligarchs, Petr Aven and Mikhail Fridman, arguing that the firm's structure allows indirect influence from Kremlin-aligned figures even after their 2022 resignations from the board. For instance, the firm's 15% acquisition of shares in UK North Sea oil producer Harbour Energy in 2024 drew backlash from UK politicians and analysts, who questioned the ethical implications of permitting investments from an entity part-owned by individuals sanctioned for their proximity to Vladimir Putin, potentially undermining Western sanctions regimes. These critiques extend to allegations of aggressive lobbying, including efforts by UK political figures associated with LetterOne to shape sanctions policy and secure approvals for deals, raising questions about transparency and potential conflicts of interest in influencing regulators. LetterOne has responded by emphasizing its operational independence, noting that Aven and Fridman's shares and voting rights have been frozen since March 2022, preventing any dividends or control over decisions. The firm maintains that it is not itself sanctioned—confirmed by the U.S. Office of Foreign Assets Control in 2023—and adheres to "the highest standards of corporate governance, compliance, business practices and ethics," exceeding legal requirements through rigorous internal policies. In addressing capital flight claims, LetterOne's leadership has argued that prolonged sanctions on founders deter legitimate investment in Europe, advocating for targeted measures that distinguish between sanctioned individuals and compliant firms like itself. The company has also pursued legal challenges to regulatory blocks, such as the 2022 UK National Security and Investment Act order to divest broadband provider Upp, framing these as overreach that ignores its decoupled structure, though courts upheld the decisions in November 2024 citing residual national security risks from ultimate beneficial ownership.

Financial Overview

Assets Under Management and Performance Metrics

As of December 31, 2024, reported net assets under management of $19.6 billion, an increase from $18.2 billion at the end of 2023. This represented a return to growth after declines in prior years, attributed to portfolio resilience amid geopolitical pressures including sanctions on its founders. Historical figures show higher levels pre-2022, with net assets reaching $26.8 billion in 2021, reflecting subsequent asset adjustments and divestitures. Assets are allocated across business units, with L1 Treasury managing $7.6 billion in net assets as of December 31, 2024, focused on fixed-income and liquidity investments. L1 Health held $2.0 billion, emphasizing biotechnology and pharmaceuticals, while L1 Retail oversaw $1.6 billion in consumer and distribution assets. These units operate semi-independently, with performance tracked against internal benchmarks rather than public indices. Performance metrics vary by unit, with L1 Treasury delivering gross returns of 7.79% in 2024, outperforming its implied benchmarks amid volatile markets. In 2023, the same unit achieved 8.9% returns, its strongest since inception, driven by credit and equity holdings. Earlier periods included a benchmark negative return of 5% in 2022 due to rising interest rates and equity drawdowns. Overall firm-level returns are not publicly disclosed as a single metric, given the private equity focus on long-term value creation over short-term yields.

Recent Transactions and Projections (2024-2025)

In 2024, LetterOne completed the acquisition of a 14.87% stake in , the United Kingdom's largest oil and gas producer, through a transaction finalized on September 4 following the purchase of 's North Sea assets. This deal, valued implicitly through the asset transfer, expanded LetterOne's exposure to upstream energy production amid North Sea operations, despite regulatory scrutiny under UK sanctions frameworks permitting the transaction. LetterOne also made a significant minority investment in Dayim Middle East Holding Company, a South Korean retail conglomerate, announced on October 17, 2024, and closed on November 13, 2024, targeting expansion in consumer goods and distribution across the Middle East. Within its retail arm, the firm forged partnerships including concessions with in 2024 to bolster physical retail formats. These moves contributed to a rebound in assets under management (AUM), reaching $19.6 billion by year-end, up from prior declines influenced by divestitures and market conditions. Looking to 2025, LetterOne anticipates robust AUM expansion driven by energy and technology divisions, with the CEO projecting "very strong" growth following 2024's stabilization. Planned initiatives include a new partnership with Ocado Group for automated retail solutions and exploratory concepts with Randox Laboratories in health diagnostics, potentially scaling across portfolios. However, sanctions on founders have led to $300 million in withheld dividends as of August 2025, constraining liquidity for new deployments absent regulatory relief. Overall performance metrics hinge on sector recoveries, with energy AUM at $2.3 billion in 2024 expected to benefit from hydrocarbon demand persistence.

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