The direct inflow of foreign money to Russia’s companies will double in the nearest three years, the analysts of PwC concluded in the report dedicated to direct investments in Russia.
Photo: Vasily Shaposhnikov
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Nonresidents Straightened Investments
The firect inflow of foreign money to Russia’s companies will double in the nearest three years with private equity funds gaining significance, the analysts of PwC concluded in the report dedicated to direct investments in Russia.
According to PricewaterhouseCoopers (PwC), nonresidents directly invested $55 billion in Russia’s economy past year (vs. $26 billion in 2006). The current amount of direct investments in Russia’s companies will step up by more than two fold in the nearest three years.
In terms of development, private equity funds have turned into the most dynamic sector of direct investing. Under the estimate of Russia’s Association of Direct and Venture Investing, they managed $10 billion in Russia in 2007 and roughly $6 billion in 2006.
The private equity funds funnel money directly into the stocks of enterprises for further re-sale. As a rule, their participation in the company’s capital lasts from two to six years. According to PwC, 16 private equity deals were clinched in 2007. The biggest of them was when Britain’s Lion Capital bought out 75 percent in Nidan Soki for $ 500 million.
“The yield generated by direct investments in Russia’s companies equals 50 percent instead of 30 percent to 35 percent in developed states,” explained Andrei Movchan, who chairs the board at Renaissance Investment Management. The most lucrative for direct investments are the consumer market, real estate, financial sector and IT, the PwC analysts said.
www.kommersant.com
All the Article in Russian as of June 06, 2008
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