Baring Vostok invests in TCS
Baring Vostok Private Equity Fund IV has decided to invest 50 million dollars to support further growth of Tinkoff Credit Systems.
Alongside the founder of the bank and majority shareholder, Oleg Tinkov, there will be three major international investment institutions: Goldman Sachs, Vostok Nafta Investments and Baring Vostok Private Equity Fund IV.
The shareholders of the company strongly believe that the valuation of TCS will continue to grow as the business continues to show excellent results. The final closing is scheduled for 18 May 2012.
The 'branchless' TCS was established in 2006 by businessman Oleg Tinkov who bought state-of-the-art IT platforms for mass customer acquisition and remote customer service. Since then TCS has established itself as one of the undisputed leaders in the Russian credit card market.
In 2007 the investment bank Goldman Sachs bought a stake in TCS, and later in 2008, the fund Vostok Nafta Investment Ltd also became a shareholder. In April 2011, the Bank issued its first million credit cards and in April 2012 - its second. According to CBR statistics, on 1 April 2012, the Bank took 5th place in terms of its non-delinquent credit card portfolio (RUB25.5 billion), with a market share of 6.0%. Net profit to IFRS in 2011 amounted to $68 million, giving it an ROE of 85%. In March 2011, Fitch Ratings raised the credit rating of the bank «Tinkoff Credit Systems» to the level of B, in April 2011 Moody's Investors Service - to the level of B2.
In April 2012, Fitch revised TCS outlook from stable to positive which is against the current industry trend and underlines TCS's very strong performance.
About Baring Vostok
Baring Vostok is one of the leading private equity firms operating in Russia and the CIS. The Baring Vostok Private Equity Funds have invested over $1.6 billion USD in more than 56 companies since 1994, and currently have committed capital of $2.2 billion USD for new investments. The Funds’ portfolios were diversified among financial services, oil and gas, consumer products, telecommunications, and media sectors, including СТС Media, Golden Telecom, Yandex, Ozon, Gallery Group, Centre of Financial Technologies, Enforta, ER-Telecom, 1C, Burren Energy, Volga Gas, Zhaikmunai, Novomet, Kaspi Bank, Orient Express Bank, Europlan, EMC and others. The Investment Advisor of the Funds, Baring Vostok Capital Partners (Guernsey) has been voted “Russian Private Equity Firm of the Year” by the readers of Private Equity International and Private Equity Online every year since 2005.
The sub-advisor of BVCP has a branch office in Moscow with a team of 30 experienced investment professionals. Baring Vostok is a member of Baring Private Equity International, a global private equity group with more than $10 billion USD of capital under management by affiliates in CIS, Asia, India, Europe and Latin America.