Private Equity Eyes Russia’s Depreciating Infrastructure

    July 2012

    Squire Sanders partner Christopher A. Rose co-authored with Macquarie Renaissance Infrastructure Fund director Pavel Nazarov an article published in Private Equity International, a publication of PEI Media Group Ltd. In "Private Equity Eyes Russia’s Depreciating Infrastructure," Chris discusses how the scale of financing required to bring Russia’s aging infrastructure up to date – US$1 trillion over the next 10 years – presents substantial opportunity for private equity investment. Investment groups enticed by "predictable cash flows, high correlation with GDP and significant pent-up demand" are beginning to take advantage of this opportunity in the rail and power sectors.

    Before private equity investment expands to a broader range of sectors and becomes a significant share of the country’s infrastructure financing, Russia will have to overcome a number of legal and financial challenges. Chris discusses these challenges, the steps Russia has taken to address them and what future actions will catalyze the private financing needed to modernize the country’s infrastructure.

    © This article was first published in Private Equity International, a publication of PEI Media Group Ltd., and is reproduced with the permission of the publisher.