Private Equity Russia

Almaz Capital, through its Almaz Capital/Cisco Russia Fund, has purchased a 23% equity stake in Novisibirsk-based online game publisher Alawar Entertainment for $3 million, according to Vedemosti. Alawar is a publisher of browser-based “casual” puzzle/adventure games with titles like Farm Frenzy 3, Vampire Saga and The Treasures of Montezuma. The company has over 60 titles with 24 released last year, and also develops games for the iPhone and other smartphone platforms.

Over 50% of the company’s revenues come from the United States and Europe but Alawar has distributed its games in 60 countries. In addition to its own website, the company distributes its games through online gaming portals as well as offers a ‘white label’ solution for web-site owners to launch their own casual games sections.

From the press release:

According to the Casual Games Association, the international casual games market reached $2.7 billion in annual in 2009, with 30% of all new games being created in Eastern Europe. Within this space, Alawar has significantly bolstered its position as the leading distributor of casual games on the Russian segment of the Internet by developing its own Web sites and expanding its partnership network. The company released over 60 new gaming products for various platforms, including PC, Mac, iPhone, Sony PlayStation 3, J2ME and Android. Throughout 2009 Alawar launched its own distribution network for Ukraine, Poland, Germany and Finland. Over the past two and a half years the company’s capitalization has more than quadrupled, while average turnover growth has reached 120% per year in the past three years.

Almaz Capital private equity group was founded by Peter Loukianoff and Alexander Galitsky with the backing of UFG, Cisco Systems and the EBRD.