Contours of Russian Private Equity

Abstract

The private equity industry in Russia dates back to 1993, when EBRD Board of Directors approved a program of regional venture funds. Since then, the industry has evolved and seen new fund managers appear, evolve, and some of them disappear, and has been shaken by two damaging financial crises, which have led to regrouping of fund managers and consolidation of existing funds. We take a closer look at the last nearly 20 years of industry development and consider the taxonomy of fund managers working in the country. The chapter considers Russian private equity industry in light of BRIC (Brazil, Russia, India, and China) counterparts and considers possible explanations behind recent fundraising trends. The market structure of the private equity industry is discussed. We discuss the landscape and diversity of Russian private equity and venture capital industry, along with the recent steps of the Russian government to reinvigorate the industry.