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Altus Capital Participated in the 9th Annual IBA Mergers and Acquisitions in Russia and CIS Conference

On 10 November 2017, the 9th Annual IBA Mergers and Acquisitions in Russia and CIS Conference was held in Moscow. The conference presented by the IBA Corporate and M&A Law Committee, supported by the IBA European Regional Forum. Mr. Sergey Vasiliev, Managing Director of Altus Capital, spoke at the session discussing the current trends and key issues on the private equity market.

Among other issues discussed, in his speech, Mr. Vasiliev referred to the changes in the investment capital sources for private equity, in particular the increase of volume and significance of quasi-state own equity (sovereign wealth funds, large public corporations and banks) and purely private (family offices, individual private investors) capital. In light of persisting geopolitical tension around Russian foreign policy, high volatility and low predictability of the market, institutional investors and development institutions remain subject to the expanding limitations preventing new investments from them on the Russian market. Further to the above tendencies, investment mandate of existing investors, who keep being interested in Russian market opportunities, gain additional flexibility through expansion of number of sectors, eligible for investments and perspective for consideration, extension of the investment horizon (a shorter minimum investment period and a longer maximum investment period), reduction of a minimum investment ticket (a reduced "average check" for investment) and readiness to consider an earlier stage project phase ("rejuvenation" of eligible projects).

Also, Mr. Sergey Vasiliev observes a growing demand from investors for investment manager to commit and participate in investments introduced by him with his own funds and co-invest alongside fund investors. That way investors want to get confirmation of the investment manager's confidence in the prospects of a proposed opportunity. Mr. Vasiliev also emphasized growing significance of clear investment exit strategy and growing interest in export-oriented projects aimed to mitigate currency risks.