macquarie does deal in russia: just out

Macquarie signs joint venture with Renaissance
By James Quinn
Last Updated: 1:46am BST 07/08/2007

Prolific Australian infrastructure investment bank Macquarie is making its first tentative footsteps behind the former Iron Curtain after signing a deal to work with Russian investment bank Renaissance Capital.

Macquarie, best known in the UK as the owner of Thames Water and the M6 toll road, has agreed to form a joint venture with Renaissance to develop infrastructure advisory and fund management opportunities in Russia and other former Eastern bloc countries.

The deal is a first for Macquarie, which, in spite of having global operations, has yet to set foot in the former Soviet Union.

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The two banks have formed a joint venture vehicle, called Macquarie Renaissance, which already has a team of 10 deal-makers in place in Moscow.

The deal was brokered on Macquarie's behalf by European chief Jim Craig. Mr Craig welcomed the Russian government's identification of the "potential role of the private sector in improving the existing infrastructure and accelerating the development programme".

Renaissance's global chief executive Alexander Pertsovsky said: "It is estimated that up to $200bn (£98.5bn) will be spent on infrastructure in Russia over the next five or so years, excluding the oil and gas sector."

Renaissance is a strong player in the region, having been set up by Stephen Jennings, formerly co-head of Credit Suisse in Moscow.