Hermitage Capital

Hermitage Capital was an investment firm that managed the Hermitage Fund, specializing in Russian companies during post-Soviet privatization and employing shareholder rights activism. The firm rapidly grew its assets under management from $25 million seed capital to $4.5 billion, notably achieving a 238% fund performance in 1997, among the best globally. It strategically invested in major Russian entities such as Gazprom, Surgutneftegaz, and Unified Energy Systems, actively challenging corporate governance issues and exposing corruption. Key figures associated with the firm included co-founder Bill Browder, original investor Beny Steinmetz, and lawyer Sergei Magnitsky, whose investigation uncovered a $230 million tax fraud. Hermitage Capital ultimately ceased its operations in Russia following escalating legal pressures and Browder's denial of entry in 2005. The firm was founded in 1996 by Bill Browder and Edmond Safra.