Foreign investors, willing to invest in Russia, are now opting for closed-end investment funds, which have become the leading segment of the Russian investment fund market, according to reports by Wedomosti. The number of closed funds has increased by 1.8 times since 2022, according to the Central Bank of Russia. The anonymity of the fund’s owners and assets is seen as an advantage over other forms of corporate structuring in Russia, experts explain.
Foreign investors are reportedly interested in Russian commercial real estate, natural resource projects, infrastructure, technology and IT. Experts estimate that not only new investors are entering the Russian market, but also those who previously left are seeking opportunities to return.
The phenomenon of closed-end funds is largely attributed to the international sanctions. Since 2022, foreign investors have been seeking new ways to legally and securely invest in Russia. According to Elena Tchassovskikh, managing director for closed-end investment funds at PSB Asset Management, closed-end funds are able to meet this demand by becoming an effective instrument for the creation and management of corporate structures, the implementation of options programs and participation in mergers and acquisitions.