Albina Nikkonen

Russian Private Equityand Venture Capital

Market Review2005

Russian Private Equity &Venture Capital Association

Number of PE & VC Funds in Russia 1994-2005

Fun

ds r

aise

d an

d liq

uid

ate

d

New funds

Liquidated fundsTotal number of funds

Tot

al n

umb

er o

f fu

nds

Capitalization of PE & VC Funds in Russia 1994-2005

Cap

italiz

atio

n of

ne

w a

nd

liqui

date

d fu

nds

Tot

al c

apita

lizat

ion

New fundsLiquidated fundsTotal capitalization

Sources of Capital 2005

Russian 22%

Foreign 78%

Russian Sources 2005

CorporateInvestors 13%

Private Individuals 7%

Government Agencies 45%

Commercial Banks 1%

InstitutionalInvestors 34%

Russian Sources 2004–2005

Private Individuals

CorporateInvestors

InstitutionalInvestors

Commercial Banks

Government Agencies $ Mln

Foreign Sources 2005

International Credit Organizations 19%

Commercial Banks 15%

InstitutionalInvestors 20%

CorporateInvestors 17%

Private Individuals 29%

Government Agencies 0%

Foreign Sources 2004-2005

Private Individuals

CorporateInvestors

InstitutionalInvestors

Commercial Banks

Government Agencies

International Credit Organization $ Mln

Types of Funds & Management Companies

Small funds

$0,5 billion -10%41 funds under 33 companies from $5 to $50 mln

Large funds

$2,5 billion - 52%11 funds under 7 companiesfrom $151 to $800 mln

Middle funds

$1,9 billion - 38% 27 funds under 20 companies from $51 to $150 mln

33

20

7

41

27

11

2558

521

1926

0 5 10 15 20 25 30 35 40 45

%

0 500 1000 1500 2000 2500 3000

$ mln

Number of funds

Number of companies

Capital under manag

($ 0.5 – 3 mln)

($ 3 – 10 mln)

($ 5 – 30 mln)

Investment by Industry 2005

Computersrelated 4,9%

Energy 0,4%

Financial services 6,5%Industrialequipment 0,4%

Chemicals & Materials 0,1%

Biotechnology 2%

Communications 31,2%

Other 21,6%Consumer market related 20,9%

Light industries 7,9%

Medical/Health related 4,0%

Investment by Stage 2005

Seed & Start-up 4,9%

Early stages 6,7%

Expansion 62,2%

Buyout 26,2%

Later stages 0%

0 20 40 60 80 100 120 140 160 180

Later stages

Buyout

Expansion

Early stages

Seed &Start-Up 2005

2004

$ mln

Investment by Stage 2004-2005

Total Number of Companies Invested

1994-2002 – 350 companies

2003 – 28 companies

2004 – 43 companies

2005 – 33 companies

Exits Distribution by Percentageof Number of Divestments 2003-2005

0 1 2 3 4 5 6 7 8 9 10 11 12

Trade Sale

Management Buy-inor Buy-out

IPO

Write-off

200520042003

III III Russian Venture Forum Russian Venture Forum

& & VIIIVIII Russian Venture Fair Russian Venture Fair

11 - 1211 - 12 October 2007 October 2007

St.Petersburg St.PetersburgRussiaRussia

Russian Private Equity &Venture Capital Association

+7 (812) 326-61-80

rvca@rvca.ru

www.rvca.ru

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