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.

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