1. Alexander Abolmasov Managing Partner NRG www.nrgc.com Understanding Russian Private equity

2. What LPsthink about Russia?

3. If I bring Russian deal to Investment committee they could fire me. If I don’t bring Chinese deal to Investment committee they could fire me. Partner Leading LP company

4. The problem is not in expected returns… Investors expecting annual net returns of 16%+ from different emPe regions over the next 3-5 years … though there is a perception gap

5. Russian PE consistently outperforms Source: Cambridge Associates, EVCA/Thomson Reuters, Bloomberg and EBRD * EBRD tracked portfolio pooled end-to-end return, net of fees, expenses, donor grants and carried interest. Excludes property funds, and includes liquidated partnerships. ** Pooled end-to-end return, net of fees, expenses, and carried interest. “The "Since Inception" figure represents the net pooled IRR since inception for funds formed between 1980 and 2009.

6. The Perception Gap about Russia Do you know what is BRIC? Have you heard of “Let’s transform BRIC into BIC”? Have you heard that Goldman Sachs updated their report in 2010 and Russia is now #2 based on attractiveness? Statistic from the poll organized by Alexander Abolmasov on BVCA Summit, London (March 2011) 95% 45% 0%

7. Russia is #10 out of 10 EM Theattractiveness of emerging markets/regions for GP investment over the next 12 months – LP views

8. Why investor don’t want invest in Russia? Factors likely to deter LPs from beginning to invest in individual emerging markets/regions over the next 2 years – % of respondents Guardian, 2 December 2010

9. Private EquityLandscape

10. UCP Russian PE industry snapshot Quadriga Capital BVCP Captive and semi-captive Elbrus Capital Russia Partners NRG UFG Mint Capital Aurora Russia Da Vinci Alfa CP Icon CP VTB East Capital Wermuth Uralsib Prometheus Aton Capman 50-100 private funds/ family offices EBRD Funds Rusnano Svarog Capital Independent New players

11. Trends Crashes Troika, Marshall Mergers Norum/Capman, Delta/UFG Spin-offs Elbrus, Quadro Deathpool Eagle CP, Trifecta New funds seeded with HNW money Aton, Prometheus, UCP Mezzanine NRG

12. Case Study: Genser Biggest Infinity and Nissan Dealer in Europe 12% of Nissan market in Russia 12 brands/24dealerships in Moscow and in Central Russia Initial investments: 2007 Hybrid equity: April 2009 Secured loan with equity kickers Exit to IPO 2012 Multiple: 1.5x Current return 20% IRR: 30% Multiple: 5x IRR: 45% 12

14. Use of funds: refinancing/working capital

15. Board seat and veto rights

16. Current return: 18%

17. IRR: 41%13

18. NRG Portfolio Ufanet: sales & EBITDA, $m (internet provider) Genser: sales & EBITDA, $m (car dealer) Source: company data Source: company data Begemot: sales & EBITDA, $m (toy retail chain) Umnitsa: sales & EBITDA, $m (baby food) 14 Source: company data Source: company data

19. NRG. Profile. Independent alternative investment manager Volga River One C.P. First Closing: 29 Sept 2006 Current size (cash): US$178 m Number of LPs: 20 (15 private + 5 institutional) Portfolio companies: 6 (telecoms, retail, food production) Tenor (years): 5+2 with 51% approval of LPs Volga River Growth First Closing: $135m, 4Q 2010 Target size: US$250 m LPs: EBRD, local Institutional LPs Tenor (years): 5+2 with 75% approval of LPs

21. Previous crisis was a big hit for Russian PE industry

22. Next crisis may kill more PE funds, because fundraising in 2012 could be as bad as in 2009 Summary Alexander Abolmasov Email: aabolmasov@nrgc.com WWW: www.nrgc.com