NEW YORK—Investor relations specialist Breakstone&Ruth has formed a joint venture with New York-based LJ Consultants to offer investor relations and corporate communications services to Russian companies. Breakstone & Ruth becomes the second IR firm to forge an alliance focused on Russia, following The Anne McBride Company, which in September entered into a strategic alliance with CapitalLogica.
Lev Janashvili, LJ Consultants’ president, and Kay Breakstone, president and CEO of Breakstone&Ruth, will lead the new venture, named LJ-Breakstone.
“We believe that over the next decade we will see a surge in demand for investor relations services in Russia,” says Breakstone. “This demand will be spurred by the steady appetite for sources of capital in the U.S. and Europe, as well as the more fundamental shift in investor and corporate psychology.”
Janashvili, meanwhile, cites a recent survey conducted by his firm that found institutional investors “overwhelmingly agreed that Russia has become more investor-friendly since the late 1990s; the overall credibility of the market is expected to improve further, particularly in the areas of corporate governance and disclosure practices.
“At the same time,” he says, “Russian corporations increasingly realize—with a sense of urgency—that they need to align their management and IR practices with the highest standards accepted in developed markets. These sentiments are growing stronger in Russia against the backdrop of impressive growth in the country’s GDP, stabilizing inflation, and relative geopolitical calm. We see these developments as the pre-conditions for substantive improvements in Russia’s investment merit.”