Eurokommerz sold 4.2% to institutional investors


Commercial finance company, Eurokommerz sold a stake of 4.2% of the company to institutional investors. The company, which was declared the largest factoring company in Russia by Expert RA, increased its number of investors during its first decade in business. Eurokommerz management owned 45.6% of the company, with the largest share of the company (50.2%) belonging to the Russia New Growth Fund.

Investors including Troika Dialog, Fleming Family & Partners, Eastgate Capital and UBS Pactual owned the 4.2% stake under Eurokommerz Investments Vehicle Limited. Simon Jamieson, Director of Fleming Family & Partners, said: “Eurokommerz has shown impressive results over the last 3 years and we are proud to be part of this success” (cbonds).

Eurokommerz operated in Russia, the Commonwealth of Independent States and emerging markets further afield. The company conducted business with 24,000 companies in Russia, Ukraine and Kazakhstan. Operating in 55 regional sales offices in Russia, Eurokommerz held factoring advances of 1.1 billion USD in 2007, seven years after the company began operations. Experiencing rapid growth, the management announced that the first half of 2008 achieved a net profit which was higher than the entirety of the previous year.

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Speaking on the sale, Gregory Karpovsky, CEO of Eurokommerz, commented, “We have successfully increased the number of relationships with companies that can add significant value to our development, especially in the risk management space and global financial expertise. The participation of such high-profile international investors in addition to a substantial management shareholding will enhance our competitive edge both in Russia and other emerging markets” (cbonds).

Troika Capital Partners is a private equity firm which has ranked in the top three best private equity firms in Russia. Giedrius Pukas, Managing Director of Troika Capital Partners said, “Eurokommerz is a great asset for our group and we are delighted to bring in new blue-chip investors. The dynamic performance of this company as well as the rapid growth of the commercial finance market makes Eurokommerz an undisputed leader of the industry and a very attractive investment” (cbonds).

Eurokommerz’ shareholders included the Russia New Growth Fund which is managed by Troika Capital Partners. Russia New Growth holds investors including the European Bank for Reconstruction and Development, Goldman Sachs Asset Management, AXA Private Equity, and LGT Capital Partners, among others.

The blue-chip investors joined Eurokommerz while it had around 2900 independent agents who worked on contacting potential clients. The company followed the objective of becoming leading commercial finance company in Russia and emerging markets.

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