Renaissance Group, the global financial services company, has launched a private banking business in Russia to focus on high net worth clients and their family offices, a division it expects to have in excess of $20 billion in assets under management by 2012.

Renaissance Private Banking will provide in-house customised investment management, local and global investment products, and a range of other services and third-party products, the firm said in a statement.

Ekaterina Konstantinova has been appointed chief executive of Renaissance Private Banking with immediate effect, reporting to Stephen Jennings, the group’s chief executive; Mr Jennings will also chair the advisory board for Renaissance Private Banking.

Prior to the appointment Ms Konstantinova worked for Renaissance Investment Management’s real estate franchise, and will continue to supervise real estate funds in her new role. Before joining RIM Ms Konstantinova was responsible for business development and management at firms including Marubeni Corporation, National-Oilwell and Troika Dialog, the Russian investment bank.

“Private Banking will be one of the core businesses for Renaissance Group. We are aimed at becoming absolute leader in this segment,” said Mr Jennings.

“We expect to see substantial growth in this segment in the nearest 2-3 years and undertake steps to benefit from it,” said Ms Konstantinova.

Media reports have suggested that Renaissance's new business has been launched as an “answer” to that of Third Rome by Andrei Movchan, the former chief executive of Renaissance Investment Management.

Mr Movchan left the company early in the year and set up his own business, for which he recruited 30 former RIM employees. According to some media reports, Third Rome has already got $200 million in assets under management from RIM’s clientele.

Renaissance was not available for comment when contacted by WealthBriefing.