This document provides an overview of the private equity industry in Russia before and during the economic crisis. It discusses the state of the Russian economy and private equity market over the past year, the impact of the crisis on portfolio companies and private equity firms, and the evolution of new financial products. The presentation concludes that while the crisis hit most private equity portfolios hard, attractive investment opportunities now exist at low valuations and competition will be limited, allowing successful firms to generate high returns in the coming years.

1. NewRussiaGrowth Private Equity AdvisorsLandscape and Evolution of Private Equity in RussiaAndrey DobryninManaging PartnerNovember 2009

2. Presentation roadmap Russian economy: what has happened over the past 12 months?

3. What was Russian PE industry before the crisis?

4. What happened with portfolio companies, GPs and LPs during the crisis?

5. Whatnew financial products were developed?

6. How will Russian PE industry evolve in the next few years?2

7. Russian macro pictureIndustrial production, y-o-y %Real disposable income, y-o-y %Source: State Statistics CommitteeSource: Central Bank of RussiaRTS indexUSD/RUBSource: RTSSource: Central Bank of Russia3

8. What was PE industry in Russia before the crisis18 Professional GPs (with assets of more than $150m) with total AUM $6bn

9. Only few are local and independent

10. Most are subsidiaries of investment banks, family offices or foreign PE groups

11. Growth capital is main investment strategy

12. Target industries: retail, financial sector, consumer services, telecoms4

13. What is NRGIndependent alternative investment manager

14. Volga River One: size - $177m, first closing - 2006; number of LPs – 20

15. 6 investments: telecoms, retail, food production

16. Valuation : 116% of invested capital (E&Y)

17. Volga Credit Opportunity – fundraising $250m5

18. What happened to PE investments?% of bad loans to total portfolio of Russian banksRetail trade turnover, y-o-y %Source: NRG estimatesSource: State Statistics CommitteeFood & beverage production, y-o-y %Broad-band Internet subscribers, mSource: PWC, NRG estimatesSource: State Statistics Committee6

19. NRG Private Equity Portfolio: Case studyUfanet: sales & EBITDA, $ mGenser: sales & EBITDA, $ mSource: company dataSource: company dataUfanet: number of subscribers, thsGenser: debt, $ m7Source: company dataSource: company data

20. NRG Credit Opportunity case studyBegemot is the second biggest toy retailer in Russia

21. Focus on mid and low price segments

22. 50 own and 32 franchisee shops in 81 cities across Russia

23. Secured debt $20m with current interest 18% and equity kickers

24. Expected IRR: 42-48%, floor IRR is 30.5%8

25. Russian PE industry outlookLimited number of opportunistic deals in the next 6 – 12 months

26. Return to classic “growth capital” model in 12-24 months

27. Limited availability of debt

28. Poor track record will create difficulties in fundraising for many GPs

29. Low deal competition

30. Attractive valuations and high IRRs9

31. SummaryRussian economy has started recovering after the crisis

32. 18 institutional GPs with AUM of more than $150m before the crisis

33. Only a couple of GPs left with significant amounts of dry powder

34. Most PE portfolios have been hit hard

35. Interesting opportunities are available in the credit market

36. Few successful GPs will enjoy low competition in the next couple of years10