Elbrus Capital Exits Investment in Mail.ru

Private equity firm Elbrus Capital divested its stake in Mail.ru with the company’s initial public offering on the London Stock Exchange. Mail.ru is a Russian internet company that holds a 2.4% stake in Facebook, as well as stakes in U.S. internet start-ups Groupon and Zynga Game Network, the maker of the popular “FarmVille” Facebook game. Elbrus Capital invested in Mail.ru in 2007, and the exit represents Elbrus’ first from the fund’s portfolio, the firm said. The IPO valued Mail.ru at nearly $6 billion. Elbrus is based in Moscow.

PRESS RELEASE
Elbrus Capital has divested its stake in Mail.ru Group Limited (formerly Digital Sky Technologies Limited) in the initial public offering of Mail.ru Group on the London Stock Exchange. The fund invested in Mail.ru Group in 2007.

Mail.ru Group is the largest internet company in the Russian-speaking world with the #1 Russian portal and leading positions in social networking, online games, e-mail, instant messaging and other segments. Over the last few years Mail.ru Group’s value increased through high organic growth of Mail.ru portal, its original platform and through targeted acquisitions in the attractive high growth internet sub-sectors, including acquiring Odnoklassniki and Vkontakte in social networking, Astrum Online in gaming and ICQ in messaging.

Dmitri Krukov, Managing Partner of Elbrus Capital, commented: “We are delighted to announce the successful first exit from the fund’s portfolio. Mail.ru Group represents one of the best Russian business success stories and we are glad to be part of it. We believe that this USD 1 billion IPO, valuing Mail.ru Group at nearly USD 6 billion, highlights attractiveness and scale of opportunities in Russia for institutional private equity.”

About Elbrus Capital
Elbrus Capital is a leading Russia and CIS focused private equity business.

Elbrus Capital was founded by Dmitri Krukov, Alexander Savin and Robert Thielen through a buyout of Renaissance Private Equity from Renaissance Group. Elbrus Capital currently manages a $324 million fund raised from international institutional investors.

Elbrus Capital focuses on investments on market leaders looking for further growth and consolidation opportunities in the post-crisis environment. The fund portfolio consists of investments in Mail.ru Group, a leading Russian internet company, an automotive retailer in Siberia and Media-One, a Russian media company active in TV (MuzTV, 7TV channels) and radio.

For more information please visit www.elbcp.com.

Should you have questions, please contact Ilya Novokhatsky, DNA Communications, Elbrus Capital public relations representative, tel.: +7 925 5181798, e-mail: ilya@dnapr.ru.