The war in Ukraine and sanctions against Russia have roiled financial markets, with . The impact on private market investment funds has been difficult to detect. “,” Shanu Sherwani, a private equity analyst, wrote in a guest column for Delano on Wednesday.

Indeed, alternative funds in general have had extremely limited exposure to Russia and the country has represented a very small slice of overall activity, according to data provided to Delano by the alternative fund data provider Preqin.

The country made up less than 0.3% of worldwide alternative assets under management. Russia-based private equity, real estate, infrastructure and private debt assets under management was $24.4bn , compared to the global total of roughly $8trn.

Fundraising

Five globally-based private equity funds with a geographic focus on Russia raised capital in 2017, Preqin reported. That number had dropped to just one fund in 2021. Globally-based real estate and infrastructure funds focussed on Russia have not raised cash since 2018, Preqin said.

Russia-domiciled alternative funds have had limited fundraising activity since 2017. The small number of private market funds that have raised investor cash since 2018 have been in venture capital.

Assets under management

Private equity has experienced solid growth in Russia-based assets under management in recent years, albeit from a low base, doubling from $11.8bn in 2016 to $22.9bn in 2021, the Preqin data indicated. Assets under management at real estate, infrastructure and private debt funds have remained small and the segments niche.