How a Russian oligarch turned state-seized assets into a multi-billion dollar global empire
Mikhail Prokhorov rose from the chaos of the post-Soviet collapse to become one of the world's wealthiest individuals. By leveraging controversial privatization auctions, he secured massive stakes in mining giants. His journey spans from managing Russian state-owned metals to owning the Brooklyn Nets and investing in cutting-edge virtual reality.
Mikhail Prokhorov’s financial ascent began in the early 1990s through his partnership with Vladimir Potanin. Together, they navigated the volatile transition of the Russian economy, utilizing their bank, Onexim, to manage government funds and conduct auctions for state-owned enterprises. The most significant of these was the 1995 loans-for-shares program, which allowed private banks to acquire majority stakes in prized companies like Norilsk Nickel in exchange for loans that the government never repaid. Critics and observers have long characterized these auctions as rigged, noting that the assets were acquired for a fraction of their market value.
Despite the controversy, Prokhorov proved to be a shrewd operator. He modernized Norilsk Nickel’s complex Arctic operations and successfully exited his major holdings just before a 2008 market crash halved the value of many Russian companies. This timing allowed him to preserve significant wealth, which he later diversified into sectors ranging from nanotechnology and media to financial services and real estate. By 2021, his net worth was estimated between US$11.5 billion and US$14 billion, cementing his status as a major global player.
Prokhorov’s influence extended well beyond Russian borders and traditional industry. In 2010, he became the first non-North American owner of an NBA team, purchasing an 80% stake in the New Jersey Nets and overseeing their relocation to Brooklyn. He eventually sold the team in 2019 for an estimated US$3.5 billion, netting a substantial profit. Beyond business, he has engaged in Russian politics, running as an independent presidential candidate in 2012 and establishing the Civic Platform party. Today, he holds Israeli citizenship, having immigrated there in 2022 under the Law of Return, marking the latest chapter in a life defined by rapid adaptation to shifting geopolitical and economic landscapes.
Source: Mikhail Prokhorov
