Currently, 58 private equity firms are headquartered in Russia, according to Preqin’s Fund Manager Profiles data. Collectively these firms have raised approximately $8.6bn in the past 10 years and have an estimated $2.3bn in dry powder available for investment. Venture capital financing (including early stage, expansion/late stage or venture general investing) is the most popular investment strategy, with 29 firms adopting this approach either exclusively or part of a broader strategy. This is followed by 22 firms pursuing buyout deals and 22 adopting growth investments as part of their strategy.
The top five Russian-based fund managers, ranked in order by aggregate capital raised over the last decade, are Baring Vostok Capital Partners, Russia Partners, DST Global, Svarog Capital Advisors, and UFG Private Equity. Over the past 10 years, these five firms have raised an aggregate $5.4bn in capital commitments, which amounts to 63% of the total capital raised by all the 58 Russia-based fund managers over the same period.
Baring Vostok Capital Partners focuses investments in companies principally operating in Russia, Kazakhstan, Ukraine, and countries of the former Soviet Union. The firm invests primarily in oil and energy, branded consumer goods, telecommunications, media, services and technology industries. It has raised predominantly buyout funds over the past 10 years, with the largest of its funds raising just over $1bn in capital commitments in 2007.
Russia Partners is a venture capital late stage and growth investor, which channels its investments in small to medium sized Russia and former Soviet Union companies. The firm prefers to invest in growing companies in a diversified range of industries. DST Global focuses on expansion/late stage investments in internet companies with high growth potential and prefers to invest in innovative, mature, and growing companies. DST Global collected $867m in capital commitments for an expansion/late stage fund in 2011, while Russia Partners raised $626m for their largest growth fund in 2008.