What does it take for a private equity firm to succeed in Russia? Guts.

Attempting to succeed where the likes of the Carlyle Group has failed, TPG, led by David Bonderman, has created a $20 billion fund, set up a Moscow office in 2007 and has three investment professionals there. It will be a long time before anyone at the firm can claim success or failure. But all agree the odds are long.

Carlyle, the globally savvy buyout firm, has failed in two attempts to create a presence Russia. It shut its Moscow office in 2005 and has no plans to return.

The Washington Post offers an interesting look at TPG's experiences in the Wild East. "The company's $100 million investment in Lenta in 2009, in partnership with state-controlled VTB Group, sparked a brawl in September. Jan Dunning, backed by TPG and surrounded by bodyguards, barged past Sergei Yuschenko, installed as chief executive by rival investors, to reclaim his job running the company. Windows were smashed and punches thrown, all of it broadcast on national television."

For all the hurdles, more private equity firms are considering stepping up their activity in the country. They are watching the TPG experience closely. My sense is that Russia remains one of the those perennial emerging markets. It doesn't seem like it ever gets to the next level.

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