Hermitage's Russian Quandary (A)

Abstract

This case was co-authored with Columbia Business School.

In June 2007, the offices of Russian hedge fund Hermitage Capital were raided by Moscow police; in the months that followed, Hermitage founder Bill Browder found himself banned from Russia and fending off efforts to expropriate the fund's Russian assets. This case describes the challenges faced by Hermitage in responding to these threats, and more broadly discusses the perils of doing business in a business environment with weak legal and political institutions

Learning Objective: To consider some of the key elements to navigating the perils of doing business in emerging markets.