The European Bank for Reconstruction and Development plans to take a 10 percent stake in a new fund being set up by Baring Asset Management for Russia and selected ex-Soviet markets, a senior EBRD official said.


David Hexter, EBRD director for financial institutions, said Thursday that Baring was hoping to launch the new fund in November.


Baring said this month that the fund's target size would be $100 million, but Hexter said the investment firm was now hoping to raise $200 million.


EBRD would also be advising the fund, which will have Warburg Securities as placement agent.


"We are planning to take a minimum stake in the fund -- 10 percent," Hexter said.


The first Newly Independent States regional fund is presently being marketed in the United States and Europe by Warburg. It was listed in Luxembourg as a closed-end investment company in June.


The fund's shares will be $100 each, 40 percent payable at subscription, with two further installments of 30 percent at eight and 16 months afterwards.


The fund's NIS region comprises Russia, Ukraine, Belarus, Kazakhstan, Uzbekistan, Azerbaijan, Moldova, Georgia, Turkmenistan, Kyrgyzstan, Armenia, Tajikistan and the Baltic States of Latvia, Lithuania and Estonia.


Most of the fund's investments are expected to be in Russia, and in unlisted companies, Hexter said.


Sovlink, a privately owned NIS-American merchant bank partly owned by Salomon Brothers, will assist on selection and analysis of investments. Russia's commercial Tokobank will serve as NIS advisor.


Russia's emerging equity markets have attracted a flurry of new funds this year. Templeton, one of the world's top emerging market funds, announced plans this month to set up a new Russia country fund worth between $300 and $400 million. Templeton hopes to list the fund on the New York Stock Exchange and eventually on the Big Board, where country funds are known to trade at wild price swings.


The London-based Fleming Investment Management this month raised $55 million for a new closed-end Russia fund which will be invested in newly-privatized companies in the oil, gas telecommunications, energy generation and distribution and mineral extraction sectors.


Other investment funds active in Russia include Framlington as well as a number of regional funds set up with EBRD's equity participation.