Russian Federation

Basic Facts

VCPE-Ranking

Key Factors Performance

Comparison within Peer Group

Separate VC and PE Indices

SWOT Analysis

Strengths

• Consumers continue to desire "“western style" goods
• Many global players see Russia as having stronger prospects in the near and mid-term than most developed markets

Weaknesses

• Confidence and transparency in corporate laws and weak local accounting and auditing standards
• The need to be "on the ground" creates challenges for foreign GPs
• Weak infrastructure

Opportunities

• Financial pressures placed on oligarchs and other business owners may bring unexpected deal flow

Threats

• A "second wave" of the financial crisis could severely damage RussianГ­s economy, and government’s reserves will likely not be sufficient to intervene as heavily as in fall 2008
• Increasing proportion of economy becoming state controlled

Outlook

• The more challenging economic environment will make it easier to distinguish strong performers from those who have "risen with the tide", and limits the number of local players who have traditionally used connections and speed to their advantage, thereby presenting interesting opportunities

Expert: Doug Jenkinson, Partner, E&Y Russia
http://vcpeindex.iese.us/?page_id=128