Russia's AntantaPioglobal to sell its managing company

Updated September 23, 2008

The world financial crisis resulted in the first sale at Russia’s pooled investment market. The owners of AntantaPioglobal Group that had sustained losses on the equity investments in small issuers sold its asset management business. The former CEO of Aton Investment Company Ivan Tyryshkin is the buyer of Russia’s eldest managing company Pioglobal Asset Management. He intends to establish the new financial holding under Pioglobal brand.

As it came out, the former CEO of Aton Investment Company Ivan Tyryshkin purchased 100% stocks of Russia’s eldest managing company (MC) Pioglobal Asset Management. "The deal on the purchase of the managing company at the owners of AntantaPioglobal Group, Alexander Gaydamak and Evgeny Kogan, is in its final stage and will be closed any day", Mr. Tyryshkin said. The head of AntantaPioglobal Group confirmed this information, but refused to announce the details. The parties don’t disclose the sum of the deal.

The agreement on the sale of Pioglobal Asset Management MC was being concluded within the framework of the assets sale owned by AntantaPioglobal Group of Companies that became one of the first victims of Russia’ financial crisis. According to the source in the Group, the equity investments in the second- and third-tier companies turned into the Group’s losses of "several tens of millions of dollars". It was the core reason, why the French bank group BNP Paribas refused to purchase AntantaPioglobal.

Then, AntantaPioglobal’s core owner, Alexander Gaydamak, decided to sell the Group’s assets in parts. On September, 22, Evgeny Kogan declared that in the nearest future, the Group of Companies would announce about the sale of its investment business as well.

Pioglobal Asset Management MC was founded in 1996. In 2007, it was incorporated in Antanta Capital Group of Companies that was renamed into AntantaPioglobal. According to the data of Dengi journal, as of January, 1, 2008, Pioglobal Asset Management occupied the 38th place in the rating of the largest managing companies. The company manages ten open mutual funds and two venture funds. The volume of the managed assets attains RUR 1,5 billion.

The buyer of Pioglobal Asset Management MC Ivan Tyryshkin reported that he intended to establish the integrated retail brand - Pioglobal. Mr. Tyryshkin declared about the intention to pay attention to his own business projects in July of this year, after he had left the chief executive post in Aton Investment Company. According to him, at the initial stage, the managing company will be amalgamated with the Internet broker, NetTrader.ru (earlier, it has been purchased at AntantaPioglobal owners), under Pioglobal brand. "The basic concept is the establishment of the financial holding", Mr. Tyryshkin explained. According to some information, the bank may join the holding in the future.

The market participants surveyed agree that under today’s conditions, the fair price for the asset management business is at the level of 8-10% from assets under the management, or RUR 130-150 million. However, the deal sum could have been less, because the key asset of the managing company - Pioglobal real estate investment fund with the volume of nearly RUR 3 billion - still belongs to the former owners of the company. According to the data, now, it is being put up for sale as well. "The fair price for Pioglobal Asset Management MC is nearly 6% from assets, or RUR 90 million", Kapital Asset Management MC CEO Evgeny Zaytsev considers.

The market participants name the purchase of the asset management business at the height of the crisis quite timely. "Sooner or later, the crisis ends at the markets, and the assets price will grow", the member of Solid Management directors’ board Vadim Sachkov says. Moreover, the new company’s owner has gotten benefit from the purchase - the well-known brand, he adds. "The company doesn’t have to spend on the promotion of the name, and that will permit to save 30-40% of the marketing budget", Mr. Sachkov considers.

At the same time, Mr. Tyryshkin has to make large investments in the development of his business, the experts warn. "The annual budget of the whole structure may reach about $15 million. The new owner shouldn’t save, if he wants to see serious and real results", Mr. Zaytsev sums up. "In the nearest year, about $20 million will be allocated to establish the financial holding", Ivan Tyryshkin declared.