INVESTMENT EXAMPLES

«TAGANROG GRAIN TERMINAL» LLC

Grain Transshipment Property Complex

An Investment Project of the Altus Capital

Project information

«Taganrog Grain Terminal» LLC, owns a port grain terminal complex located in the southern part of Taganrog, a port city in the Rostov Region on the shore of the Azov Sea. The grain complex consists of two terminals; the first terminal was commissioned in 1999, while the second was commissioned in 2003, both designed for receiving grain batches and oil crop batches from both railroad and automotive transport. The terminals are also equipped for the conditioning, drying, forming, short-term storage of those products, and their subsequent shipment via water and railroad transport.

Investment plan

The participation interest in the company was purchased at a discount to the market value. The investment envisioned growth of company value due to project development and an anticipated increase of grain exports, and the subsequent sale to a strategic investor. Fully exited in 2016.


«PLEMZAVOD RAMENSKOYE» CJSC

Land Properties and Agricultural Plants

An Investment Project of the Altus Capital

Project information

«Plemzavod Ramenskoye» CJSC owns land properties and agricultural plants in the Moscow region.

Investment plan

The investment plan envisions selling land properties to investors, predominantly to developers, and participating in project development in order to increase the value of the investment objects, which includes the following phases: (1) registration of title documents; (2) zoning of land properties; (3) primary development — geodetic and geological land surveys; and (4) utilities — gas supply, electricity supply, water, and sewerage supply.


Sakhalin Shipping Company (SASCO)

Marine Shipping Services

An Investment Project of the Altus Capital

Project information

Sakhalin shipping company (SASCO) provides marine shipping services in the Far Eastern region of Russia. Its key operating activities are:

  • Vanino-Kholmsk ferry line — core business of the Company. The line is the only route connecting Sakhalin island with mainland;
  • Commercial marine shipping — 10 regular regional and international lines, and tramp shipping;
  • Passanger carriage;
  • Services for shelf projects in Sakhalin region.

Investment plan

The investment strategy is based on scheduled tariff increase, expected market growth as well as introduction of corporate governance standards of higher quality and increase of operation management efficiency.


CETRACORE ENERGY GmbH

Trading Company

An Investment Project of Altus Capital

Project information

The principal activity of the project concerns export trading in the European market of oil and oil products, including supply and storage. The company is registered and has an office in Vienna, Austria.

Investment plan

Investment commenced upon the launch of the project, and envisioning an annual dividend income, as well as an increase in the value of the company over the medium term, on the back of incremental increases in the volume of sales and the gradual growth of net profit of the company.


ALTUS CAPITAL

Altus Capital is an independent investment advisory company that specializes in direct investment into rapidly-growing and undervalued companies. The guiding principles of its investment strategy are wide sectoral diversification, a clear entry strategy, and a medium-range investment horizon (from 1 to 5 years). Although the company is focused upon projects from Russia and other CIS countries, its investment reach is not merely confined to this region.

Altus Capital was founded on the platform of the investment banking division spun off from UFG Capital. Altus Capital invests owners' capital and provides corporate advisory services to clients, including equity and debt fundraising and M&A transactions. As we near the end of 2016, Altus Capital's total volume of transactions already exceeds $1 billion.

SERVICES

Altus Capital is focused on providing corporate advisory services, including equity and debt financing, M&A and real estate transactions. The team also assists clients with challenging projects related to deal structuring and direct investments management. We coordinate the entire deal process from preliminary analysis and structuring to negotiations, signing of the final documentation and deal closing, creating added value at each stage. Our participation ensures effective coordination of the negotiation process and significantly contributes to achievement of the most favourable deal terms.

 

M&A advisory

Business consolidation and joint venture, search for potential targets and acquisition/sale of businesses in Russia and overseas.
 

Equity and debt financing

Equity financing including club deals for existing businesses and new projects; coordination of the debt financing process and deal structuring for the project financing, mezannine financing, and LBO/MBO deals.
 

Strategic investment consulting

Development of the long-term investment strategy, preparation of business for potential sale or attraction of financing, monitoring and management of operations of existing portfolio companies, business planning, structured assets, capital structure optimization, development of exit strategy, and search of potential investment targets or strategic partnerships.

INVESTMENT STRATEGY

Via its knowledgeable and experienced organization of the investment process, Altus Capital identifies successful investments, allowing for the maximization of shareholder value within a medium-range investment horizon.

 

Preliminary analysis and choice of investment project

The company's portfolio comprises a wide array of projects from various sectors of the economy. Altus Capital invests in undervalued companies, facilitating income on share capital by means of an efficient business model or via an improvement of corporate governance, taking into account the anticipated conditions of the market.
 

Financial and legal due diligence

The team at Altus Capital consists of highly qualified professionals with unique expertise in the fields of corporate governance and investment. Detailed financial and legal due diligence employed by the company uncovers potential problems that may be prevented, or quickly and efficiently solved.
 

Structuring and determination of transaction funding source

In structuring transactions, we consider different options for achieving an optimal balance between equity and borrowed capital. Our unblemished reputation and numerous, well-established business partnerships with leading financial institutions in both Russia and in European countries, enable us to raise funds promptly, and on favorable terms.
 

Role of shareholders in management

We strive to assist our portfolio companies to realize their full potential for growth by providing competency in the fields of strategic planning, corporate governance, international partnerships, and fund raising. The degree of participation depends on the particular features of each investment, and does not exclude the direct participation of Altus Capital managers to help portfolio companies in solving specific managerial problems.
 

Exit strategy

One of the underlying principles of the Altus Capital investment philosophy is a clear exit strategy that is agreed upon at the initial stage of investment decisions. This approach gives us confidence in producing successful results for the long run.

Industry Specialization

Altus Capital focuses in several sectors. Due to continuous analysis of these sectors we have a deep understanding of major trends and react quickly to their changes.

Healthcare


Construction Materials


Security


Renewable energy sector


Electronics and mechanical engineering


Automation of processes and robotics


Consumer sector

TEAM

Dmitry Klenov

Managing Partner

Sergey Vasiliev

Managing Director

Dmitry Kozlov

Director

TEAM

Dmitry Klenov

Managing Partner


The founder of the company, Dmitry Klenov has been managing international investment projects for more than a decade. He has been a partner since 2006, and heads the legal practice of UFG Wealth Management, the first independent family office in Russia. With the participation of Mr. Klenov the assets under management of UFG Wealth Management reached $1 billion, and the company established itself as a leader in the market of the management of large private sector capital. In fact, Forbes magazine recognized UFG Wealth Management as the best family office in Russia. Mr Klenov is in charge of the issues of capital structuring, inheritance, tax and migration client service, as well as legal support of mergers and acquisition deals. He consults clients on investment project structuring, property acquisition, as well as the financing, leasing, and management of both private and commercial real estate.

Before joining UFG Wealth Management Mr Klenov was employed by one of Russia's largest development companies, where he was in charge of property management optimization, analysis of construction investments, and the implementation of investment contracts. From 2000 to 2003, Mr Klenov held the post of project manager at a large construction company, charged with the implementation of such significant projects as the Lefortovo Tunnel (Third Ring Road), and the bridge over the Moskva river near Christ the Saviour Cathedral.

Dmitry Klenov graduated from the Moscow State University of Foreign Affairs of the RF Ministry of Foreign Affairs, with a degree in «International and European Union Law«.

Sergey Vasiliev

Managing Director


Sergey Vasiliev joined Altus Capital in 2016 as Managing Director. Mr. Vasiliev focuses on deal structuring as well as operational and legal support of investments.

Prior to joining Altus Capital from 2014 to 2016 was in charge of legal and operational matters at Pangeo Capital, a private equity investment and advisory group with $1 billion of committed capital, as its General Counsel.

Before that from 2013 to 2014 occupied position of Senior Legal Counsel at Russian Direct Investment Fund (RDIF) Russia's sovereign wealth fund with $10 billion of reserved capital under management. From 2007 to 2013 occupied various positions from paralegal to senior associate at international consulting firms Clifford Chance and Cleary Gottlieb Steen and Hamilton, where covered a wide range of issues in corporate law, capital markets and finance.

Mr. Vasiliev graduated with honors from National Research University Higher School of Economics with a degree in law.

Dmitry Kozlov

Director


Dmitry Kozlov has experience in corporate finance and metals & mining sectors. Prior to joining Altus Capital, Mr. Kozlov held the position of Deputy Head of Investor Relations and Capital Markets department at Polyus Gold, the largest gold producer in Russia. Before that, Dmitry worked in the corporate finance department at PwC, where he was responsible for financial modeling and M&A deals execution in the metals & mining, consumer, and utilities sectors, he was also engaged in strategy and operational consulting projects.

NEWS

DECEMBER 18, 2017

Altus Capital won SPEAR'S Russia Wealth Management Awards 2017


Altus Capital is granted Start of the year (2017) by SPEAR'S Awards. The winners of SPEAR'S Russia Wealth Management Awards 2017 were announced at the Awards Ceremony, which was held on 18 December 2017 at the Mossovet theatre in Moscow.

This year among the nominees there were such leaders of the financial industry as Alfa Bank, VTB24, Promsvyazbank, Sberbank, Friedrich Wilhelm Raiffeisen, UniCredit Bank, Goldman Sachs Private Wealth Management, Julius Baer, UBS Switzerland, well-known investment and consulting companies. Judging Panel of the award consisted of the most highly reputed and influential individuals both in the industry, as well as in society. SPEAR'S Russia Wealth Management Awards was monitored by PwC as the Independent Consultant.

About the Awards

SPEAR'S Russia magazine and PBWM.ru portal present SPEAR'S Russia Wealth Management Awards organized to celebrate the greatest achievements in private banking, wealth management and related industries. SPEAR'S Russia Wealth Management Awards is organized by tradition and analogy with the award ceremony annually held in London by SPEAR'S UK. SPEAR'S Russia is the Russian version of one of the most trustworthy and influential European (London, UK) magazine for the world's richest audience. PBWM.ru is Russia's first specialized private banking and wealth management online portal. Founder — PBWM Media. Creative and commercial management of the project is provided by MEDIACRAT.



NOVEMBER 10, 2017

Altus Capital Participated in the 9th Annual IBA Mergers and Acquisitions in Russia and CIS Conference


On 10 November 2017, the 9th Annual IBA Mergers and Acquisitions in Russia and CIS Conference was held in Moscow. The conference presented by the IBA Corporate and M&A Law Committee, supported by the IBA European Regional Forum. Mr. Sergey Vasiliev, Managing Director of Altus Capital, spoke at the session discussing the current trends and key issues on the private equity market.

Among other issues discussed, in his speech, Mr. Vasiliev referred to the changes in the investment capital sources for private equity, in particular the increase of volume and significance of quasi-state own equity (sovereign wealth funds, large public corporations and banks) and purely private (family offices, individual private investors) capital. In light of persisting geopolitical tension around Russian foreign policy, high volatility and low predictability of the market, institutional investors and development institutions remain subject to the expanding limitations preventing new investments from them on the Russian market. Further to the above tendencies, investment mandate of existing investors, who keep being interested in Russian market opportunities, gain additional flexibility through expansion of number of sectors, eligible for investments and perspective for consideration, extension of the investment horizon (a shorter minimum investment period and a longer maximum investment period), reduction of a minimum investment ticket (a reduced "average check" for investment) and readiness to consider an earlier stage project phase ("rejuvenation" of eligible projects).

Also, Mr. Sergey Vasiliev observes a growing demand from investors for investment manager to commit and participate in investments introduced by him with his own funds and co-invest alongside fund investors. That way investors want to get confirmation of the investment manager's confidence in the prospects of a proposed opportunity. Mr. Vasiliev also emphasized growing significance of clear investment exit strategy and growing interest in export-oriented projects aimed to mitigate currency risks.



APRIL 14, 2017

Acting as an advisor in relation to acquisition of Galen composite construction materials producer


APRIL 14, 2017 — Altus Capital investment banking division acted as a buyer's business and legal advisor in relation to a successfully closed deal involving acquisition of a 100% stake in Galen, Russian composite construction materials producer, from GC «Osnova» and RUSNANO JSC. The parties do not disclose the deal amount.

Altus Capital coordinated the processes of preparation and structuring of the deal, and arranged and assisted in its signing and closing thereof.

Altus Capital team plans to continue cooperation with the new owner of Galen, perspective Russian composite construction materials production business, to ensure its further growth and development, as well as to expand the sales geography and establish sales channels for finished products both in Russia and abroad, and gradually transform Galen into an international company.

Galen is a Russian developer and manufacturer of modern composite materials from basalt plastic and fiberglass for industrial, civil and road construction, mining and power generation. Galen is the leader of the domestic market of basalt-plastic construction materials, and the largest exporter in this sector.


Our Offices


Cyprus

82 Akropoleos Avenue, 1st Floor, 
2012 Akropolis, Nicosia, Cyprus

 

Russia

Legenda Tsvetnogo,
2, Tsvetnoy blvd,
127051, Moscow, Russia

 

Luxembourg

25A, Boulevard Royal
L-2449 Luxembourg

T +357 22 107 242
F +357 22 450 775


  T +7 495 664 70 70


  T +352 26 631 420


Cyprus

82 Akropoleos Avenue, 1st Floor, 
2012 Akropolis, Nicosia, Cyprus
T +357 22 107 242
F +357 22 450 775


Russia

Legenda Tsvetnogo,
2, Tsvetnoy blvd,
127051, Moscow, Russia
T +7 495 664 70 70


Luxembourg

25A, Boulevard Royal
L-2449 Luxembourg
T +352 26 631 420


E-mail

     

Cyprus


82 Akropoleos Avenue, 1st Floor,
2012 Akropolis, Nicosia, Cyprus

   

Russia


2, Tsvetnoy blvd,
127051, Moscow, Russia

   

Luxembourg


25A, Boulevard Royal
L-2449 Luxembourg

T +357 22 107 242
    T +7 495 664 70 70
    T +352 26 631 420

E-mail


E info@altusca.com