Dow Jones International News
By Financial News reporters
17 November 2008
Just a year after they were engaged in a frantic war for the best talent, investment banks in Russia have started slashing hundreds of jobs and cutting pay.
Lay-offs at two of the country's largest domestic investment banks - Troika Dialog and Renaissance Capital - are approaching 1,000, and cuts will end up being substantially deeper than had previously been declared, according to bankers in Moscow.
Troika Dialog has begun cuts expected to total 500, or 35% of its overall staff, according to two bankers at the company. The bank was unavailable for comment. Renaissance Capital will cut 25% of its employees, according to an internal memo sent to staff, which represents about 375 of their overall staff of 1,500. However, bankers there said the figure will be higher.
A Rencap spokesman said nothing had been decided.
Elsewhere, there have also been 20 redundancies at mid-tier broker Trust Bank, according to a banker inside the company. VTB Bank is also cutting staff. Meanwhile, Ed Kaufmann, head of investment banking at Alfa-Bank, said the company was "trimming overall headcount" but is still hiring selectively.
Pay cuts are also in the pipeline. At Troika, those earning more than $3,000 (EUR2,357) a month have been told their pay will be slashed by 25%, according to one banker. Banking group Uralsib's staff have been told their salaries will be cut by 20%, while employees at broker Metropol earning more than $10,000 per month have been told their salaries will also be cut by 20%, according to staff at both companies.
Overseas banks that have piled into the market in the past year appear more resilient however. Merrill Lynch said it was not cutting staff in Moscow and UBS said it plans to increase staff.
www.efinancialnews.com
Showing posts with label Alfa Capital. Show all posts
Showing posts with label Alfa Capital. Show all posts
Monday, 17 November 2008
Tuesday, 14 August 2007
Antanta to sell stake in Russian asset arm
Financial News
Jason Corcoran in Moscow
13 August 2007
Russian investment bank Antanta is lining up private equity buyers to take a 25% stake in its asset management business Pioglobal.
But Denis Matafonov, director for investments at Antanta Pioglobal, denied market speculation in Moscow that 100% of the company was being touted for sale with the UK's Standard Bank, the leading suitor. He said: “We need money, western experience and a western brand name for our asset management business and we are talking to a number of private equity firms with experience in this field.”
According to analysts, a 25% holding in Pioglobal Asset Management, which has about €500m ($685m) in assets under management, could be worth about $30m (€21.9m). It also has a 52% stake in a $150m real estate fund, which is not part of the sale. The company owns internet broker Net Trader as well as internet cafe chain Net City.
A Moscow private equity source suggested Troika, Alfa Capital or Baring Vostok could be interested. All three have recently raised significant funds to invest in Russia.
Pioglobal’s team runs six mutual funds and private portfolios, but it has struggled to gain scale in a competitive and fast-growing market, which is dominated by Troika, Renaissance Capital, Alfa and new foreign entrants such as Benelux bank Fortis and German insurer Allianz.
www.efinancialnews.com
Jason Corcoran in Moscow
13 August 2007
Russian investment bank Antanta is lining up private equity buyers to take a 25% stake in its asset management business Pioglobal.
But Denis Matafonov, director for investments at Antanta Pioglobal, denied market speculation in Moscow that 100% of the company was being touted for sale with the UK's Standard Bank, the leading suitor. He said: “We need money, western experience and a western brand name for our asset management business and we are talking to a number of private equity firms with experience in this field.”
According to analysts, a 25% holding in Pioglobal Asset Management, which has about €500m ($685m) in assets under management, could be worth about $30m (€21.9m). It also has a 52% stake in a $150m real estate fund, which is not part of the sale. The company owns internet broker Net Trader as well as internet cafe chain Net City.
A Moscow private equity source suggested Troika, Alfa Capital or Baring Vostok could be interested. All three have recently raised significant funds to invest in Russia.
Pioglobal’s team runs six mutual funds and private portfolios, but it has struggled to gain scale in a competitive and fast-growing market, which is dominated by Troika, Renaissance Capital, Alfa and new foreign entrants such as Benelux bank Fortis and German insurer Allianz.
www.efinancialnews.com
Thursday, 2 August 2007
Fortis strengthens Russian venture
Financial News
Jason Corcoran in Moscow
31 July 2007
Fortis Investments, the Belgo-Dutch asset manager, has doubled the number of staff in its Russian fund management joint venture to 90 and hired two senior investment professionals from a local rival.
The alliance with St Petersburg-based CIT Finance, completed in May, combines the companies’ interests in Russia and the Commonwealth of Independent States countries and Kazakhstan.
The venture has raided Russian rival Alfa Capital Partners for talent. Charles Tennes, former chief investment officer at Alfa, has been appointed head of equity, while Alfa portfolio manager Pavel Laberko arrives as head of research.
Tennes joined Alfa in 2003 from US hedge fund Rydex, where he oversaw $9bn (€6.6bn) in assets as portfolio director.
"Chuck Tennes is a leap forward for asset management in Russia," Alfa Capital chairman Bernard Sucher said, after hiring him.
Tennes is a commentator on financial media such as CNBC, CNNfn and Bloomberg TV.
Christian Fendt, director of the eastern Europe, Middle East and Africa regions at Fortis Investments, has moved to St Petersburg to become chief operating officer of the venture, which is headed by CIT’s Vladimir Tsuprov.
A spokeswoman for CIT Fortis said: "We have hired fund managers, middle and back office staff and we are looking for a head of sales and other sales people."
The joint venture, which has an office in Moscow, has launched a Kazakhstan subsidiary with six staff in Almaty, the Kazakh capital.
CIT Finance said assets under management had risen 44% to €910m since January.
Fortis said it wanted to tap into Russia's retail market and to offer international clients access to Russian investment opportunities.
www.efinancialnews.com
Jason Corcoran in Moscow
31 July 2007
Fortis Investments, the Belgo-Dutch asset manager, has doubled the number of staff in its Russian fund management joint venture to 90 and hired two senior investment professionals from a local rival.
The alliance with St Petersburg-based CIT Finance, completed in May, combines the companies’ interests in Russia and the Commonwealth of Independent States countries and Kazakhstan.
The venture has raided Russian rival Alfa Capital Partners for talent. Charles Tennes, former chief investment officer at Alfa, has been appointed head of equity, while Alfa portfolio manager Pavel Laberko arrives as head of research.
Tennes joined Alfa in 2003 from US hedge fund Rydex, where he oversaw $9bn (€6.6bn) in assets as portfolio director.
"Chuck Tennes is a leap forward for asset management in Russia," Alfa Capital chairman Bernard Sucher said, after hiring him.
Tennes is a commentator on financial media such as CNBC, CNNfn and Bloomberg TV.
Christian Fendt, director of the eastern Europe, Middle East and Africa regions at Fortis Investments, has moved to St Petersburg to become chief operating officer of the venture, which is headed by CIT’s Vladimir Tsuprov.
A spokeswoman for CIT Fortis said: "We have hired fund managers, middle and back office staff and we are looking for a head of sales and other sales people."
The joint venture, which has an office in Moscow, has launched a Kazakhstan subsidiary with six staff in Almaty, the Kazakh capital.
CIT Finance said assets under management had risen 44% to €910m since January.
Fortis said it wanted to tap into Russia's retail market and to offer international clients access to Russian investment opportunities.
www.efinancialnews.com
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