Baring Vostok Capital Partners Baring East Capital Partners

Baring Vostok Capital Partner specializes in investment in the CIS. Since 1994, funds under the management of Baring Vostok have invested in more than 50 successful companies in the financial services, oil and gas industry, telecommunications and media, in the consumer sector, including companies such as Yandex, Kaspi Bank, Bank Vostochny Express, Europlan, Financial Technology Center, Barren Energy, Vimpelcom, Golden Telecom, Syktyvkar LPK, Sladko, Borjomi and Ozon. Among the fund's investors are such well-known international financial institutions as the European Bank for Reconstruction and Development, the International Financial Corporation, and also the world's largest pension funds, government investment corporations, university funds from America, Europe and Asia. Baring East is part of Baring Private Equity International, a group of private equity fund managers with $3.5 billion in assets in the CIS, Asia, India, Europe and Latin America.

Investment projects

Current

The funds of the Baring Vostok group own shares in Yandex, the Avito private classifieds service, the ivi online cinema, Tinkoff Bank and other projects. Vostok Emerging Finance (VEF), among other things, owns a 3.5% stake in Tinkoff Credit Systems.

• Yandex
• Avito
• ivi
• Gallery Group
• Volga Gas
• OZON.ru
• Caspian Bank
• CFT
• Enforta (Prestige Internet)

Complete

• Burren Energy
• CTC Media
• Golden Telecom
• Lymex Holdings
• With pleasure
• Syktyvkar LPK
• Borjomi
• ER-Telecom Holding (Дом.ru)

History

2024

Vostok Investments bought out 8.89% of Renaissance Insurance

On May 17, 2024, it became known that the Vostok Investments group entered into an agreement to acquire a share of the Baring Vostok fund in PJSC Renaissance Insurance Group. There is no information on the estimated value of the transaction as of the specified date. Read more here.

Sale of shares in Ozon and Renaissance Insurance to East Investments

The president Russia Vladimir Putin signed an order that allowed transactions with foreigners-controlled shares of the group "" and Renaissance insurance Ozon. The corresponding document was published in mid-February 2024. More. here

The founder of Baring Vostok pleaded guilty to embezzlement of 2.5 billion rubles from Vostochny Bank and received a reduction in the suspended sentence

The founder of Baring Vostok, Michael Calvey, pleaded guilty to embezzlement of funds from Vostochny Bank and received a reduction in his suspended sentence. This became known on February 1, 2024. Read more here.

2023: Former Baring Vostok top executives buy back 27.6% stake in Ozon for $142 million

On March 31, 2023, the U.S. Securities and Exchange Commission (SEC) released documents revealing details of the business section of the Baring Vostok investment group founded by Michael Calvey. Read more here.

2022: Investing in Kodland Online School

On January 11, 2022, it became known about the investment of $9 million in Kodland. According to the press service of the online programming school for children, the venture capital fund Redseed invested the most in the startup as part of a funding round. In addition, Baring Vostok, Kismet, Flyer One Ventures and I2BF partner Leksander Nevinsky invested in Kodland. Read more here.

2021

Investing in Russian marketing automation platform Mindbox

On December 9, 2021, the Baring Vostok Foundation announced an investment of $13 million in. The Mindbox developers of the marketing automation platform intend to spend the funds raised on the launch of new and development of existing products, as well as on mergers and acquisitions (). M&A More. here

Purchase of 16% of the pharmaceutical company "Square-S"

In early October 2012, it became known about the sale of 16% of Kvadrat-S to the Baring Vostok investment fund. Its participants did not disclose the financial terms of the transaction. According to Vedomosti, citing a source close to one of the parties to the transaction, we are talking about an amount of 2 billion rubles. Read more here.

Investing in Jiffy express delivery service

In September 2021, Jiffy announced a $28 million investment. The received funds of the service of express delivery of products intends to spend on the geographical expansion of its presence in London and other British cities, in which more than 100 thousand people live. Taking into account this transaction, the total amount of investments in the project with Russian roots reached $35 million. Read more here.

Investing in taxi services aggregator Muver

September 13, 2021 it became known about the investment of $1.2 million in Muver. Several funds have invested in the service for collecting delivery and taxi orders, including|Baring Vostok. The main investor was the Russian venture capital fund Xploration Capital. The deal was also attended by Rapid Ladder Capital Fund, investment company A.Partners and syndicate of investors of the Angelsdeck club. The service plans to invest the raised funds in marketing and product development in the American market, writes Forbes. Read more here.

Investing in EBAC Online School

On September 8, 2021, it became known about the investment of $11 million in EBAC (Escola Britânica de Artes Criativas & Tecnologia). Baring Vostok and Begin Capital funds, AngelsDeck venture capital club, A.Partners investment company and QiwiSergey Solonin co-founder invested in the Brazilian online school as part of the Series A funding round. Read more here.

Investing in online learning platform GetCourse

On July 22, 2021, the Winter Capital Partners fund, whose key investor is billionaire Vladimir Potanin, announced its investment in the online educational platform GetCourse. According to the results of the funding round, which was also attended by Baring Vostok and Goldman Sachs, the startup raised a total of $50 million. Read more here.

Investing $6 million in Level.Travel tour booking service

On July 14, 2021, it became known about Baring Vostok's investments in Level.Travel. The tour search and booking service raised $6 million from the fund in exchange for a minority stake. Its size is not specified. Read more here.

Buying 12% in the clothing brand 12Storeez

On July 8, 2021, the Baring Vostok fund announced the acquisition of 12% in 12Storeez without specifying the value of the transaction. Peregrine Capital executive director Dmitry Gabyshev, in a conversation with Kommersant, estimated the entire company at 12Storeez 2.7 billion rubles and 12%, as a result, at 330 million rubles. According to Gabyshev, Baring Vostok can count on an investment horizon of three to five years with a yield of 25% per annum. Read more here.

Investing in ElectroNeek

ElectroNeek, a player in the Russian robotic automation market, announced on June 1, 2021 that it would raise $20 million. The investment round was led by Baring Vostok with the participation of Yellow Rockets.vc, Dragon Capital, I2BF, Angelsdeck, Softline Ventures, business angels Sergei Dashkov, Anton Litvyakov and other investors. Taking into account the investment, the value estimate of ElectroNeek exceeded $100 million. Read more here.

Investing in ivi online cinema

On May 25, 2021, the Russian Direct Investment Fund (RDIF) announced an investment of $250 million in ivi. Investors in the new round of financing of the online cinema included VTB Capital, Invest AG Alexander Abramov, MillhouseRoman Abramovich, Baring Vostok, Flashpoint Venture Capital, as well as several leading sovereign wealth funds of the Middle East. Read more here.

Investing in fintech startup Food Rocket

At the end of April 2021, it became known that Food Rocket had attracted investments in the amount of $2 million from Baring Vostok, AltaIR Capital, AngelsDeck Business Angel Club, Internet Initiatives Development Fund (IIDF), founder of a similar British Jiffy service Arthur Shamalov and co-founder of the Food Party (now Yandex.Chef) Philip Bashyan. Read more here.

Investing in British grocery delivery service Jiffy

On April 12, 2021, it became known that Jiffy had attracted investments in the amount of $3 million from the Baring Vostok fund. The startup intends to spend the funds received on expanding the grocery delivery zone faster, opening new darkstores (stores working only for delivery) and expanding the team. By April 12, Jiffy employs about 50 people. Read more here.

2020

Exit from the capital of ER-Telecom

At the end of December 2020, Baring Vostok withdrew from the capital of ER-Telecom. The share of the Internet provider from the investment company was bought by its main owner and president Andrei Kuzyaev. Read more here.

The Return of Michael Calvey

On December 28, 2020, it became known about the return of Michael Calvey, who is being accused in the case of embezzlement of 2.5 billion rubles of Vostochny Bank through the issuance of a non-refundable loan to the First Collection Bureau, to work in the Baring Vostok investment fund. Read more here.

Baring Vostok launches new $200m fund

In December 2020, it became known about the creation of a new fund by the investment company Baring Vostok. Its volume will be up to $200 million.

According to Forbes, for Baring Vostok this is the first fund since 2016. Funds from it will be directed to projects related to information and telecommunications technologies, the consumer sector and media. The fund has already raised some of the money in the first half of 2020. The publication clarifies that the fund is designed for money from Russian and Arab investors.

In addition to the new fund, Baring Vostok has four other operating funds launched in 2004-2016. Their total capital is about $3.3 billion. Two of them still have an investment period. The first, with a volume of $75 million, has the only investment in Ozon. The second has a broader portfolio. Through it, Baring invested in the 2GIS cartographic service, the VkusVill network, Pulkovo Airport, and also invested in the Kazakhstan marketplace of Kaspi.kz, which in October 2020 made an initial public offering of its shares (IPO) and became the most expensive public company in Kazakhstan, according to Forbes publication.

Earlier it was reported that Baring Vostok suspended the formation of the fund due to investor concern about the arrest of founder Michael Calvey. According to a company representative, the decision is explained by "concern of international institutional investors about contradictions in Russian and international arbitration legislation and uncertainty in the protection of investors' rights."^[1]

Skyeng Online English School Investment

On November 20, 2020, it became known about the investments attracted by EdTech startup Skyeng from Baring Vostok and billionaire Vladimir Potanin's Winter Capital Partners fund. Read more here.

Increase in share in Ozon

In mid-November 2020, Ozon filed documents with the US Securities and Exchange Commission (SEC), of which it became known that AFK Sistema and Baring Vostok are increasing the total share of the Internet retailer to 76% after buying back securities for $135 million. Read more here.

Buying a stake in the Сравни.ру marketplace

On October 19, 2020, it became known about the sale of Oleg Tinkov's stake in the financial aggregator Сравни.ру. It was bought by Baring Vostok and Goldman Sachs. The financial terms of the transaction were not disclosed. The size of investors' shares also remained secret. Read more here.

Negotiations on participation in the investment of 1.5 billion rubles in SKB Kontur

The Russian Direct Investment Fund (RDIF), together with RTP Global and direct investment funds Elbrus Capital and Baring Vostok, plans to invest 1.5 billion rubles in SKB Kontur. This was reported on June 19, 2020 by RBC with reference to the head of the RDIF Kirill Dmitriev. Read more here.

Increase in share in Ozon

On March 31, 2020, TAdviser became aware that Baring Vostok increased its stake in Ozon by converting the loans provided on a parity basis with AFK Sistema. The size of the share is not disclosed. Read more here.

Buying a stake in CarPrice online car auction

On January 23, 2020, it became known about the investment in CarPrice by a consortium consisting of the Russian Direct Investment Fund (RDIF), the Baring Vostok Fund and funds from Europe and the Middle East. Read more here.

2019

Baring Vostok and Leonid Boguslavsky Foundation invested in cloud platform

In mid-December 2019, Voximplant announced it was raising $10 million in investments. The round of financing for the developer of the cloud platform for voice and video communication was led by Baring Vostok Capital Partners and the RTP Ventures fund Leonid Boguslavsky. Read more here.

Sale of a stake in Vertical to the ex-head of MegaFon

On December 16, 2019, it became known about the acquisition of Ivan Tavrin a stake in the tower company "" from Vertical. The latter, as a Baring Vostok result of the transaction, completely left the number of shareholders of the second largest independent mobile tower operator in. Russia Read more. here

Foreigners are released under house arrest, all Russians are in jail

The transfer of Baring Vostok employee and French citizen Philippe Delpal to house arrest was due to the intervention of French President Macron personally, who turned to the Russian president before the countries' negotiations. Another employee of the American Michael Calvey Foundation was bothered by the US Embassy and numerous friends.

For Russian citizens from Baring Vostok with four and three children - Ivan Zyuzin and Vagan Abgaryan, there is no one to bother with the case. The head of the "First Collection Bureau" Maxim Vladimirov, who is not from the fund and no one needs, remains behind bars.

Calvey released under house arrest, managers are severely pressured in jail

Since February 2019, investigators have been trying to get confessions from Baring Vostok employees in the case using strict restrictions in communicating with children and relatives.

By August 2019, French partner Baring Vostok Philippe Delpal was denied six months not only meetings with his wife and relatives, but also calls to children - he was forbidden to call his youngest daughter Estelle to congratulate her on her birthday. Justification - he can speak French with her. He was also forbidden to read books in his native language, since the FSIN officers do not know him. Investigators did not believe the promise to talk to their daughter in Russian. At the same time, French President Macron asked for him.

Without calls and dates, there were other employees of the fund - Vagan Abgaryan, whose wife was left with three young children.

Investigators ignore requests for dates, although they are legally required to respond within three days.

In a similar situation, Ivan Zyuzin, whose wife was left with four young children.

At the same time, investigators released the main culprit of the "crime" Michael Calvey under house arrest.

Other employees are unlikely to be home soon. Investigators substantiated this by the fact that three employees allegedly lack real estate in the capital. But that's not the case. Delpal's wife even bought an apartment in Moscow and provided documents about it. Ivan Zyuzin is also registered in the capital.

The plot of the current criminal case is on the verge of collapse. Employees were accused of embezzling 2.5 billion rubles from Vostochny Bank by transferring Luxembourg shares to IFTG to the bank. The applicants in the criminal case, Artem Avetisyan and Sherzod Yusupov, contradict themselves - they told the investigators that IFTG shares cost 600,000 rubles and did not attach a clear assessment. But Vostochny Bank itself, which, after its arrest in February, seized Avetisyan, asks buyers to buy back these shares for 3.7 billion rubles and found applicants. Which confirms the general absurdity of what is happening.

Baring employees will most likely have to sit until February of the new year, as they are unnecessary witnesses in the courts between Avetisyan and Baring abroad, observers say.

The arrest of the head and top managers of Baring Vostok in Moscow on suspicion of embezzlement of 2.5 billion rubles. at Vostochny Bank

The founder and senior partner of the investment company Baring Vostok Capital Michael Calvey was detained on February 15, 2019 in Moscow along with several other top managers of Baring. They are suspected of large-scale fraud. The corresponding article 159 part 4 of the Criminal Code provides for punishment in the form of imprisonment for up to 10 years. According to the information presented on the official portal of the courts of general jurisdiction of Moscow, the court session on the choice of a preventive measure is scheduled for February 15. Read more here.

2016: Investing $5.5 million in Doc +

On July 6, 2016, it became known that Baring Vostok Private Equity Fund and Yandex invested about $5.5 million in Doc +. This money will go to marketing, the launch of the service in St. Petersburg and other Russian cities with a population of one million, the expansion of the platform and the number of services. Read more here.

2011: Investment in 1C

On October 1, 2011, it became known that the Baring Vostok Private Equity Fund IV invested in the 1C group of companies. This was announced by the management of the software company on Saturday at a partnership seminar. About this^[2]" said one of the participants in^[2] event. The fact of the transaction was confirmed by the representative of 1C Alexei Kharitonov and the senior partner of the Baring Vostok fund Elena Ivashentseva. According to Kharitonov, Baring Vostok invested in a new company, on the basis of which 1C consolidated assets: these assets themselves became 1C's contribution, and the fund contributed money and received about 9%. The remaining 91% is controlled by 1C CJSC.

Only a business related to licensing and work with state secrets remained fully owned by ZAO, Kharitonov said. With the exception of this area, the new company controls the entire 1C business, adds Ivashentseva. Neither party discloses the amount of the transaction.

1C promises to use the funds raised to further develop, acquire and expand its joint venture structure. As a rule, Baring Vostok is a long-term investor, and in the case of 1C too, adds Ivashentseva.

In addition, 1C and Baring agreed to create a pool of stock options for the parent company, part of which will be provided annually to key 1C employees, joint business partners and franchisees who play a strategic role in the development of the group.

Participants in the IT market and managers of investment companies told Vedomosti about the negotiations between the founders of 1C and Baring back in 2009. The basic documents on the deal were signed, according to some of them, in the spring of 2011. It could take two years to reorganize 1C, suggests the manager of a large investment bank: earlier the company's business was dispersed among many joint ventures and needed centralization.

The financial indicator 1C calls only one - the dynamics of turnover change, which in 2010 added 20%. In 2010, the total turnover of the 1C group amounted to $608 million, RIA Novosti reported at the end of September, citing company materials (this estimate was confirmed to Vedomosti by a manager close to the participants in the transaction), and in 2011 it is planned to increase by 26% to $768 million. The capitalization of the main competitors 1C - SAP and Oracle - as of September 30, 2011 amounted to 3.41 and 4.1 indicators of revenue for the previous 12 months, respectively. If you apply the corresponding multipliers to 1C, then its estimate can vary from $2.07 billion to $2.49 billion, and the cost of Baring's share - from $186 million to $224 million.

The value of the multiplier is determined, on the one hand, by the scale of the business, and on the other, by the dynamics of its growth, explains Nadezhda Golubeva, senior analyst at Unicredit Securities. 1C revenue is two orders of magnitude less than both Oracle and SAP; In terms of growth, 1C is at the level of SAP (+ 19% in 2010), but is inferior to Oracle (thanks to the purchase of Sun Microsystems, it increased revenue by 33%). "As a first approximation" 1C can be estimated at three to four revenues, Golubeva admits.

2010

On September 3, 2010, it became known that Baring Vostok Capital Partners was negotiating the purchase of shares in Er-Telecom for its Baring Vostok Private Equity Fund IV, a manager of one of the investment companies told Vedomosti. A source close to Er-Telecom also knows about this. The size of the sold package is about 10%, this is an additional issue, said the manager of the company - partner of Er-Telecom. According to him, due diligence is now being completed, and a deal may be signed in the coming weeks. A Baring spokesman said only that information on this account would not be available until a month later.

2008

Sale of STS Media shares with a record return in the history of the company

The fund fully sold its shares in STS Media, receiving the highest return in its history.

Baring Vostok became a minority shareholder in Etalon Group with a 15% stake

In 2008, the Russian construction company Etalon Group attracted Baring Vostok. The contract was signed in January, the deal was completed in March 2008. As a result, Baring Vostok became a minority partner with a 15% equity stake.

2007: Record Fund 4

In February 2007, the Baring Europe Vostok Private Equity Fund IV with a capital of $1.05 billion and the Baring Vostok Fund IV Supplemental Fund with a capital of $450 million for co-investment of large projects were announced.

2006

STS Media placed shares on NASDAQ with a capitalization of over $2 billion.

2005: Third Foundation

In 2005, the third Baring Vostok Private Equity Fund III was formed with a capital of $413 million. More than half of the capital of the new fund was formed at the expense of shareholders of two other funds under the management of Baring Vostok, the remaining funds were received from institutional investors in Europe, North America and Asia, the company said.

The general agent for raising capital for the new fund was UBS.

BVPE Fund III will invest mainly in oil and gas enterprises, consumer goods production, telecommunications and media, financial services and high-tech projects. The fund intends to acquire companies operating in Russia, Ukraine and other countries of the former USSR. At the same time, he will give preference to buying controlling stakes^[2]..

In addition to the BVPE Fund III, Baring Vostok Capital Partners manages the First NIS Regional Fund with a capital of $160 million and the Baring Vostok Private Equity Fund with a capital of $205 million. Funds were invested, among other things, in such companies as VimpelCom, Burren Energy, Syktyvkar LPK, Golden Telecom, STS Media, SladKo and Borjomi.

2004: ING share repurchase

In May 2004, BPEP bought out ING's stake in its business. At the same time, Baring Vostok partners, like other BPEP structures, became the owners of their regional companies and founded a new one - Baring Private Equity International (BPE International). The alliance of these independent companies provides an excellent opportunity to operate under a single brand, with general management and control procedures.

Sale of OJSC Sladko to the Norwegian concern Okla Group.

2003

Burren Energy has successfully listed shares on the London Stock Exchange.

2002

The sale of Syktyvkar LPK to the Austrian company Neusiedler has become one of the largest transactions in Russia to attract a large strategic investor in the industry.

2001

The formation of the second direct investment fund Baring Vostok Private Equity Fund with a capital of $205 million - the first private investment fund that began working in Russia after the 1998 crisis.

2000

The creation of a single national brand "SladKo" and the consolidation of three regional confectionery factories - "Confi" (Yekaterinburg), "Volzhanka" (Ulyanovsk) and "Zarya" (Kazan).

1999

Top managers from leading Russian investment companies joined the Baring Vostok team.

1998

For the first time in Russia, the First NIS Regional Fund paid dividends to its shareholders in the amount of $100 million, and their total amount for the entire period of operation of the fund exceeded $620 million.

Investors' confidence in the correctness of the Baring Vostok approach and the great potential of the Russian economy after the 1998 crisis made it possible to form a new fund in 2001 - the Baring Vostok Private Equity Fund (BVPE Fund) with a capital of $205 million.

1997

In 1997, the telecommunications company VimpelCom, which was part of the fund's portfolio, was the first in Russia to list shares on the New York Stock Exchange.

In 1997, two teams (Baring Asset Management and the Russian-American commercial bank Sovlink) merged to create Baring Vostok Capital Partners, which became a division of the group specializing in direct investment, Baring Private Equity Partners (BPEP). Subsequently, BPEP became a wholly owned subsidiary of Dutch banking group ING.

The partnership with BPEP and ING opened up Baring Vostok access to the professional experience of investment projects implemented in emerging markets in Asia, Latin America and Eastern Europe, which allowed the BVCP team to avoid many mistakes and competently use advanced investment ideas. This was the time of the formation of the post-Soviet economy, the creation of market institutions and the strengthening of the legislative framework in the countries of the region. The inevitable frequent economic crises were a serious test for the business of the companies in which the fund's funds were invested, but these crises opened up new commercial and investment opportunities.

1996: Investment in Borjomi

For the first time, a foreign fund made investments in the economy, Georgia investing in the production of mineral water. "Borjomi

1995: Creation of Burren Energy Oil Company

The creation of an independent oil company Burren Energy, engaged in the production and transportation of oil in the Caspian and, later, in West Africa and other regions.

1994: Launch of the $160 million First NIS Regional Fund

The First NIS Regional Fund ("The First Regional Fund of Independent States") with a capital of $160 million was launched as one of the first foreign direct investment funds in Russia and the CIS. The fund was formed by Baring Asset Management and the Russian-American commercial bank Sovlink. The foundation was managed by a specially created team of four professionals, one of whom was Michael Calvey.

Before the revolution of 1917

Barings' ties to Russia date back to the 18th century, when the company began financing the trade of Russian merchants. Since 1817, Barings also served as the main international bank for the government of the Russian Empire, placing bonds and raising capital to finance military orders, build railways and develop urban infrastructure. After the 1917 revolution, Barings' relations with Russia were cut short.