Private Equity in Russia: Not Development, But Reconstruction From Scratch

As reported by RBC, private equity in Russia has shifted from being a backup strategy to becoming one of the key mechanisms for driving business growth. High interest rates, expensive debt, and a stagnant IPO market are forcing companies to seek alternative sources of capital—PE and M&A deals are turning into systemic tools.

At the same time, the private equity market in Russia is still in its formative phase. Despite the availability of liquidity and business interest, the industry as an institution essentially does not exist: there are no unified deal standards, replicable exit practices, or a stable long-term capital infrastructure.

KAMA FLOW Partner Evgeny Borisov comments:

“For a long time, private equity in Russia existed as a collection of ad-hoc investments rather than an independent asset class. Today, against the backdrop of high interest rates and limited IPO opportunities, private equity is effectively becoming a foundational financing tool for many companies. But for it to work on an economic scale, the market must be predictable for founders, investors, and strategists. That’s why at KAMA FLOW we focus not only on individual deals but on developing a broader practice: we establish structured entry and exit strategies, work on corporate governance, and build a clear logic for growth and exit. Essentially, we are assembling the private equity market as a system—not just making isolated investments.”

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