Around 80% of the firm’s funding stems from LetterOne, an investment management firm co-founded by sanctioned Russian oligarch Mikhail Fridman, the Financial Times reported yesterday. Yesterday, Goldman Sachs said it had put a pause on business with $9 billion private equity firm Pamplona Capital Management. private market’s ties with Russia’s elite. sanctions force firms to study their own relationships, we’re only slowly starting to see the extent of the U.S. markets.Īfter Russia invaded Ukraine at the end of February, these concerns are all the more pressing.Īs U.S.
regulation may fall short of blocking access to the U.S. The intelligence agency expressed concerns that U.S. In 2020, a group of hackers obtained a confidential FBI memo that showed that a private equity firm had taken more than $100 million from a Russian business allegedly tied to organized crime. This is an issue that has been on the table for years. regulators-collects the information needed to understand who these investors are or the nature of their investments in order to calibrate potential systemic risks posed to U.S. What is shocking is that nobody-not the funds, nor the advisers, nor any U.S. private investment markets-the growth of which have outpaced public markets dramatically in recent years-is not shocking. They added later: “That Russian investors want access to U.S. adversaries or corrupt foreign officials,” three directors of the FACT Coalition wrote in the letter to the SEC. hedge funds, private equity funds, venture capital funds, and other types of private placement funds are being utilized to shield, protect, and grow the wealth of Russian oligarchs and the wealth of other potential U.S.
But here’s more: They’re not legally required to know anyway.Įarlier this week, the Financial Accountability and Corporate Transparency Coalition, an alliance of 100 state, national, and international organizations, sent a letter to the Securities and Exchange Commission, urging the regulator to amend its disclosure requirements for private equity firms and other private fund advisors and require those who manage money to conduct due diligence on who exactly it is their customers are. Without putting in the work, it may be difficult for private equity or venture capital firms-especially small ones-to know exactly who their investors are.
hedge funds and private equity firms, per the New York Times, keeping his own name under wraps as a source of funding. Russian oligarch Roman Abramovich, for one, reportedly used a string of shell companies and a small Austrian bank to invest billions of dollars in U.S. Some wealthy investors or Russian oligarchs have gone to extraordinary lengths to conceal their identity. But here’s a problem: What if you don’t know your firm is tied to Russian money in the first place?
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