Russian PE: A bull play in a bear market

In contrast to the US and western Europe, the private equity industry in Russia is in rude health. Guy Norton reports from Moscow on the rationale for the optimistic outlook.

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WHILE PRIVATE EQUITY firms in the US and western Europe are facing the twin perils of an economic recession and severely reduced access to capital, the opposite is true of the emerging markets universe in general and Russia in particular. Talk to private equity firms in Moscow and there is an unmistakeable air of optimism about the prospects for the asset class, given continuing strong economic output and a growing pool of investable companies and investors to back them.

However, a refreshingly pragmatic stance is being taken by many of the private equity players in Russia.

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