Russia Partners provides long-term investment capital into Russian companies for their expansion and modernization, with the goal of increasing their capitalization and market value. This style of investing requires a hands-on, value-added approach where management of portfolio investments is as important as investment selection.
Russia Partners’ goal has always been to pursue companies with unique market franchises, competent management groups, low entry valuations and the potential for a resale to a strategic investor or public offering. Industry sectors that exhibit these qualities are, in general, those businesses that provide basic goods and services to a population that is still releasing over 70 years of pent-up demand. In particular, target industries will be those such as advertising & publishing, construction materials, consumer & household products, consumer services, financial services and leasing, IT services, logistics, media & media services, pharmaceuticals, real estate, retail and telecommunications.
Russia Partners often works with industry partners and strategic investors, many of whom are looking to enter the Russian market together with a private equity firm with years of on-the-ground experience. Russia Partners has successfully partnered with, or sold a stake to, strategic investors in several of its portfolio companies, such as Syktyvkar Forest Enterprises, Sidanco, MTV Russia and EuroCement. The combined value of the investments of the foreign strategic investors in these four deals is over $900 million.