Blackstone to pull out of Russia
US private equity group Blackstone is “giving up on Russia”, highlighting how even well-connected western investors are shying away from doing business in the country.
The New York-based buyout group has been frustrated in its attempts to find deals in the country since its co-founder Stephen Schwarzman joined the international advisory board of the Russian Direct Investment Fund, a $10bn government-backed fund, three years ago.
It hired Dmitri Kushaev, the former head of investment banking at ING in Russia and a former private equity executive, as senior adviser to assist on deals in the country. But Blackstone, which does not have an office in Russia, has chosen not to renew the contracts of the consultants it employs in the country.
According to a person with knowledge of the matter, the move will bring to an end Blackstone’s embryonic attempts to break into Russia. Blackstone declined to comment.
Blackstone’s decision was also prompted by the fact that it had not found suitable investment opportunities in the past three years, the person said. “In the good times, Blackstone couldn’t find anything to do and in the bad times, Blackstone can’t imagine doing anything.”
The European Bank for Reconstruction and Development, which has backed some of Russia’s most successful private equity groups in the past three decades, including Moscow-based Baring Vostok, has also suspended new investments in the country.
Source: FT- Blackstone to pull out of Russia
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