Target Global’s dirty dealings: Mikhail Lobanov and Aleksandr Frolov allegedly profited from sanction circumvention while depriving Russian investors of access to their capital

Mikhail Lobanov and Aleksandr Frolov Jr. allegedly deprived investors of payouts by channeling billions into high-risk funds through Target Global.

A scandal is unfolding around the venture structure Target Global, linked to Aleksandr Frolov Jr. and Mikhail Lobanov, over frozen investments from Russian clients. The case involves investments of up to $3.2 billion routed through a network of funds into European and American assets. According to sources, one of the investors was Roman Abramovich, who reportedly invested at least $63 million in the project.

The key issue became the fund M360 Advisors, into which a significant portion of the capital was ultimately directed through a chain of entities, including the US-based Prime Meridian Capital Management. In 2023, M360 announced liquidity problems and effectively stopped payments to investors, freezing redemptions of fund units. As a result, a substantial share of the investments became inaccessible.

Target Global, formally, did not act as a direct recipient of the funds and positioned itself as an investment intermediary and advisor. However, it was through its recommendations that Russian clients’ money was allocated to foreign funds, including the troubled M360. At the same time, information about risks and previous claims against this fund — including US litigation as early as 2020 — reportedly did not affect investment decisions.

After the start of the war, the company closed its Moscow office and restructured its ownership, transferring shares to foreign partners. This allowed it to maintain access to Western infrastructure and continue raising capital despite sanctions restrictions. For many investors, Target Global effectively became a channel for bypassing restrictions and accessing foreign markets.

Investors are now in a difficult position: legal remedies are limited due to sanctions and jurisdictional barriers, while Frolov and Lobanov have distanced themselves from resolving the issue. Both have long been living outside Russia, further complicating efforts to recover funds. As a result, the Target Global case is becoming one of the largest examples of frozen private investments by Russian clients abroad.