Russian private equity firm Elbrus Capital undergoes renaissance


Following a spin-out, a fund restructure and a rebranding, Renaissance Private Equity has emerged from its parent as Elbrus Capital, a new Russia-focused fund manager.

Dmitri Krukov, the former managing partner of Renaissance Group subsidiary Renaissance Private Equity, has set the new business up alongside Alexander Savin, the ex-CEO of A1 Group, an investment arm of Alfa Group, and Robert Thielen, founder and managing partner of Waterland Private Equity.

Krukov, Savin and Thielen joined forces and bought out Renaissance Private Equity from its parent at the end of last year. The firm managed a fund raised in early 2008 and is now investing the remaining $180m under the auspices of Elbrus.

The group will focus on mid-market investments along four themes that the three founders have identified as the most attractive in post-crisis Russia: “changing consumer needs”, education and healthcare, infrastructure and real estate, and “natural resource services”.

Krukov said, “The Russian entrepreneurs and medium-size businesses are starved of long-term equity capital. One of the reasons for this capital shortage is lack of established, professional private equity institutions. Our ambition is to address this gap and build a leading Russian private equity business building on the unique Russian and international experience of our team.”

The fund’s inherited portfolio consists of pre-crisis investments in DST, a Russian internet group with an interest in leading social networking site Facebook, and Media One, a Russian TV and radio business that recently announced a joint venture with AFMH Media.

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