Investment Partnerships

Should equity funds investing in Russia be actually based in Russia is a provocative question. It leads to a myriad of hazy issues – only a small fraction of which are, in fact, legal - that make up dazzling but evasive world of venture capital. Whether Russian law isn’t good enough or the fund managers just prefer, for some other reason, staying off Russia’s shores, most if not all private equity funds here are set up under foreign law.

New bill ‘On Investment Partnerships’ recently approved by Russian Parliament in the first, principal, reading seeks to prepare grounding so that investors, not only foreign but Russian too, could at least start thinking about moving their offshore vehicles into the jurisdiction of local courts. More about the new law.