Sistema Capital

Sistema Capital started active in 2012. Starting with the provision of liquidity management services for companies of AFK Sistema group, as of November 2019 Sistema Capital Management Company offers a modern level service, continuing to serve both large companies and wealthy individuals and retail investors. According to the results of work in 2018, the company occupies the 8th position in the market among management companies in terms of collective investment in Russia, according to Investfunds.

History

2021: MTS bought Sistema Capital Management Company for 3.5 billion rubles

On September 17, 2021, it was announced the sale of 70% of the authorized capital of Sistema Capital LLC to MTS for 3.5 billion rubles. As a result of the transaction, MTS became the sole owner of the company.

According to MTS, the consolidation of 100% of Sistema Capital Management Company will accelerate the withdrawal of new products for retail investors and wealthy customers (HNWI), expand the MTS financial services ecosystem, and also allow the telecom operator to increase its share in the fast-growing investment services market.

MTS acquired Sistema Capital Management Company for 3.5 billion rubles

From the press release it also follows that from 2016 to 2021, the total amount of funds managed by Sistema Capital Management Company grew eight times to 184 billion rubles. In the ranking "Expert RA" of management companies in Russia, the amount of funds in the management of Sistema Capital Management Company rose to 12th place in 2020 from 33rd place in 2016.

According to MTS Vice President of Financial Services, Chairman of the Board of MTS Ilya Filatov, the purchase of Sistema Capital Management Company will continue the transformation of MTS Bank into a retail leader who provides a range of investment services to retail investors and wealthy customers.

Using the potential of the MTS ecosystem, with this transaction we plan to significantly increase the Group's market position in digital investment services. We will also get the opportunity to further integrate the MTS Investments platform into the MTS Group service ecosystem - into the mobile banking application, the loyalty program and others, "he said.

By September 17, 2021, MTS received all the necessary corporate approvals and regulatory approvals for the deal. The transaction was recommended for approval by the audit committee of the MTS board of directors and after that approved by the MTS board of directors. The London branch of UBS AG acted as a financial adviser and provided MTS with an opinion on the fairness of the transaction. The legal consultant was Cleary Gottlieb Steen & Hamilton.^[1]

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