IFD Kapital Group

IFD Kapital Group, earlier also called IFD Capital Financial Group, is a Russian financial holding company founded in 2003 from LUKoil non-oil assets, based in Moscow. With assets exceeding US$14.7 billion and total shareholders’ funds of 7.5 billion US$ as of 2012, it ranked among the top-100 largest Russian companies by volume of proceeds, according to ratings of Expert-400[1] and finance500.com. As of 2013 it had a triple A rating with a Russian rating agency.[2]

History

The origin of IFD Kapital Group are with the Russian oil giant LUKoil. In the beginning of 2003, LUKoil split off 3 billion US$ of non-oil or non-core assets, which started IFD Kapital Group: LUKoil's insurance business and pension fund LUKoil-Garant. LUKoil's deputy chief executive Leonid Fedun became IFD Kapital's first chair. In April 2003, IFD Kapital Group agreed to buy brokerage LUKoil-Reserve-Invest, and the sale was completed in January 2004.[3] In the spring of 2003 IFD Kapital Group also bought JSC Capital Investment Group, which had started within LUKOIL Reserve-Invest about 7 years earlier.[4] In June 2004 IFD Kapital group bought LUKoil's majority stake in the mid-sized bank Petrocommerce, Open joint-stock company (OJSC), which had been founded in 1992, and it sold it in 2013 to Otkritie Financial Corp.[5] By 2004 IDF Kapital Group was owned by a closed-end fund called Strategic Investments, with unknown owners, managed by 'Management-Center', and Igor Sherkunov as chairman of the board of directors, a long term LUKoil insurance company man and member of LUKoil's board of directors.[6]

In May 2006, the two main owners of IFD Kapital were reported to be Lukoil executives: CEO Vagit Alekperov and deputy chief executive Leonid Fedun.[7]

Services

IFD Kapital Group operates in investment banking and brokerage services, focusing on pension reserves and insurance reserves. The company manages non-state pension funds, closed-end real estate mutual funds, and various insurance products, including mandatory medical insurance.[8] It manages 36 non-governmental pension funds (NPFs), including such major Russian funds as Blagosotoyanie a mandatory pension insurance in 80 regions of Russia, serving 2.9 million customers, assets of 6.5 billion euros,[9] Gazfond, LUKOIL Garant, Norilsk Nickel, Sberbank, the government-owned Electric Power Industry fund, Promagrofond, KIT Finance Investment Bank, and others.[2]

Organization

IFD Kapital has four subdivisions: asset management business, Petrocommerce banking group, media and information technology and real estate. The corporate center of the Group coordinating the subdivisions is the "IFD Kapital” Integrated Private Investment Fund (IPIF).

Asset management business

The holding company 'Group Kapital Asset Management' CJSC was the second largest Russian asset management firm with over 230 billion rubles of assets in management,as of September 30, 2012 per company website.[10] It comprises three companies, namely Kapital Asset Management Company LLC, Kapital Asset Management joint stock company (JSC) and Management Company Kapital Mutual Funds LLC. The holding is headed by Sergei Mikhailov, a member of the Board of Directors with numerous connections. The holding totaled assets of RUR 132.7 billion as of March 31, 2013.[2] In November 2013 Bloomberg News reported IFD Kapital was planning to sell the holding in a deal estimated at $300 million, but as of April 2014 this has not occurred.

Petrocommerce banking group

Petrocommerce OJSC, was established in 1992, and grew into the "Bank Petrocommerce Group" by incorporating Commercial Bank for Industry and Construction "Stavropolye" (Stavropolpromstroybank) Joint Stock Investment Company (JSC), Komi regional bank “Ukhtabank” (JSC Komiregionbank “Ukhtabank”) JSC, and “Bank Petrocommerce-Ukraine” public joint stock company, per Petrocommerce website.[11] Moody's Investors Service rated Petrocommerce at Ba3/D-according to its international scale, and at Aa3.ruaccording to the national rating scale. Standard & Poor’s rated it B+/B according to international scale, and ruA according to national scale. The Russian rating agency 'Expert RA' gave it A+ and 'Rus-Rating' gave it BBB- according to international scale and AA-according to national scale, per IFD Kapital website. Petrocommerce was among the 20 biggest banks of the Russian Federation in 2007 [12] and among the top 30 banks as of 2014.[11] Investment bank Otkritie, Russia's second largest financial group by assets, bought Petrocommerce as of 31 October 2013.[13] The new CEO since November 2013 is Vladimir Rykunov, former financial director and member of the executive board of Nomos bank.[14]

Media and IT

The 'Russian Media Group' is a holding company of numerous Russian radio stations and one of the largest Russian media holdings. It also includes the entertainment internet portal, www.muz.ru "for on-demand download of legal digital music and video".[15]

Real estate

The real estate arm owns 3 Class A office buildings in Moscow, a sports center in the Sokolniki area, two hotel complexes in Russia and Ukraine, besides constructing a new stadium for the “Spartak” Football Club Moscow.

Board of Directors

As of 2014 Leonid Fedun is chairman of the board of directors. The four members are Aleksander Zhirkov, Sergey Mikhailov, Olga Plaksina and Vsevolod Gordyi, with Elena Ilynskaya as secretary of the board of directors per the company website[16]

References

  1. ↑ "Credit and Financial Stability Ratings". Moscow: EXPERT RA. Retrieved 10 April 2014.
  2. 1 2 3 "NRA has affirmed reliability rating "AAA" of the Group of Asset Management Companies KAPITAL". Press Release. National Rating Agency, Ra-national.com. 22 July 2013. Retrieved 10 April 2014.
  3. ↑ Eduard Gismatullin (13 August 2004). "LUKoil Puts Assets in Financial Group". The Moscow Times. Retrieved 11 April 2014.
  4. ↑ "At the start of a long road" (Interview with Igor Sherkunov). Oil of Russia, No. 2, 2004. 2004. Retrieved 10 April 2014.
  5. ↑ "Russia's Otkritie Financial Corp buys Petrocommerce bank". Reuters. 30 October 2013. Retrieved 11 April 2014.
  6. ↑ "Building a Russian financial giant" (Profile). The Russia Journal. May 2004. Retrieved 11 April 2014.
  7. ↑ Teagarden, Michael (1 March 2006). "Lukoil Executives Alekperov and Fedun Own Russia's IFD Kapital". Bloomberg News. Retrieved 11 April 2014.
  8. ↑ "Company Overview of IFD Kapital Group". Retrieved 10 April 2014.
  9. ↑ "About Blagosostoyanie: www.npfb.ru". Company website. Absolut Bank. Retrieved 10 April 2014.
  10. ↑ "Asset management". IFD Kapital Group. Retrieved 11 April 2014.
  11. 1 2 "Petrocommerce Banking". official website. IFD Kapital Group. 2014. Retrieved 11 April 2014.
  12. ↑ ""Petrocommerce" Banking Group". IDF Kapital Group. 2007. Retrieved 11 April 2014.
  13. ↑ "Otkritie ties up with IFD Kapital, buys Petrocommerce". Zephyr. 31 October 2013. Retrieved 11 April 2014.
  14. ↑ "Executive Profile Vladimir Rykunov". Bloomberg News. Retrieved 12 April 2014.
  15. ↑ "Banking Group". IDF Kapital Group. 2007. Retrieved 11 April 2014.
  16. ↑ "About us: Board of Directors". official website. IFD Kapital Group. Retrieved 11 April 2014.

External links

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