Russian billionaire launches $17 billion fund

By Aleksandras Budrys

MOSCOW (Reuters) - Russian billionaire Mikhail Prokhorov launched on Thursday a $17 billion (8.6 billion pound) private investment fund, Onexim Group, which he said could almost double in value by developing energy, nano-technology and mining projects.

Prokhorov, the 42-year-old former chief executive of Norilsk Nickel GKMN.MM who is splitting from long-term business partner Vladimir Potanin, predicted the new group would control assets worth over $30 billion in five years.

"This is a conservative estimate," he told reporters at a presentation of the fund.

Prokhorov will be president of the group and former Norilsk Nickel executive Dmitry Razumov, 32, its general director.

Onexim Group was created on the basis of Prokhorov's 50 percent share in the Interros banking and industrial group and his 22 percent stakes in Norilsk and Polyus Gold (PLZL.MM) (PLZL.RTS), Russia's largest gold miner.

Prokhorov said the fund would develop energy projects, including hydrogen fuel cells, as well as high-technology projects and non-ferrous and precious metals mining.

"Onexim is going to examine projects, the value of which may double, triple or rise several times in the medium term," said Razumov, a former deputy chief executive of Norilsk.

"We are a big player and we are going to deal with projects costing $1 billion and more," he said. "We have a very ambitious task to build one of the largest private investment funds in the world specialising mainly in innovation projects."