Sistema Capital Partners
Sistema Capital Partners (SCP) is an investment arm of Sistema, which invests Russian institutional capital in developed real estate markets in Europe and the United States. The company was established in December 2015 and comprises leading professionals from the Russian and international real estate market. SCP also offers legal support for transactions and asset management for Western institutional investors looking at Russian commercial real estate. SCP manages the publicly traded Luxembourg fund Arista SICAV-SIF.
Fund size: EUR 446 млн (AUM), EUR 208 млн (capital invested by Sistema and co-investors).
Fund's life: Indefinite
Investment focus: Real estate
Investment criteria: Real estate in countries with a stable macroeconomic situation, high market liquidity (annual amount of transactions in the market) and competitive cost of debt. Sistema acts as an anchor investor, attracting Russian co-investors.
In 2016, SCP set up a joint venture with the German company Corestate AG and successfully closed three acquisitions of retail real estate portfolios in Germany for a total amount of EUR 332m.
High Street IV - 25 high-street retail properties in secondary cities in Germany, acquired in 2015-2016. Gross lease area: 57,700 sq m. Tenants: C&A, Saturn, H&M, Peek & Cloppenburg. Portfolio strategy: creating added value through proactive asset management (renting out vacant areas, repositioning, capital improvements).
High Street Prime I - 4 high-street retail properties in secondary cities in Germany, acquired in 2016. Gross lease area: 60,000 sq m. Tenants: Saturn, H&M, Esprit, United Cinemas, Modehaus Fischer, Cierpinski Sport. Portfolio strategy: creating added value through proactive asset management (renting out vacant areas, repositioning, capital improvements).
High Street Prime II - 2 high-street retail properties in secondary cities in Germany, acquired in 2016. Gross lease area: 37,000 sq m. Tenants: Saturn, TK Maxx, Mc Fit, Holmes Place, Apcoa. Portfolio strategy: creating added value through proactive asset management (renting out vacant areas, repositioning, capital improvements).
Arista – a Luxembourg real estate fund managed by Sistema Capital Partners. The fund manages 3 commercial properties (2 shopping malls and an office building) with a total area of 34,700 sq m, situated in Moscow and the Moscow region. The fund's shareholders are Scandinavian institutional investors. Shopping mall tenants: Perekrestok, Adidas, Levi’s, l’Occitane, KFC, McDonald’s, KFC. Office tenants: Volvo, SC Johnson, Yokohama. Portfolio strategy: creating added value through proactive asset management (optimising rent payments, re-signing lease agreements and renting out vacant areas, cutting costs, refinancing).
Sistema Asia Fund
Sistema Asia Fund Pte. Ltd. - is a venture fund of Sistema. The fund was established in Singapore and invests in high-tech companies in India and Southeast Asia that work in the B2C and B2B segments and have a professional team, stable sources of revenue and potential to go global. Sistema owns 100% of the fund.
Fund size: USD 50m
Fund's life: Indefinite
Investment focus: High-tech companies in India and Southeast Asia at the medium development stage (Series B and later investment rounds), oriented towards mass and corporate markets.
Investment criteria: An enthusiastic, persistent and goal-oriented team with tech and industry expertise, founders with complementary skills, founders remain in charge of operations; the market size should be minimum USD 1bn today or within three years; established industry leaders or companies moving towards leadership; positive economic performance with a large safety margin (high gross margin); clear and transparent strategy for reaching investment breakeven; confidence about exit/obtaining liquidity through strategic sale or IPO.
In 2016, the fund concentrated on the Indian market; it plans to enter the Southeast Asian market in 2017, but will retain its investment focus on India. The fund's offices are situated in Singapore and New Delhi. In 2016, Sistema Asia Fund became a noticeable player on the Indian venture capital market, closing 4 deals with such renowned international investors as Accel Partners, Amazon, Mayfield, and with Indian A league funds such as Helion Ventures, and Ventureast.
Seclore - the EDRM (Enterprise Digital Rights Management) system developed by the company allows corporations to control use of files within and outside the company. It has more than 5m users from 600 companies in 29 countries. Advanced and reliable EDRM solutions and innovations related to access to protected documents via browsers gained Seclore an award for successful growth from Frost & Sullivan, resulted in its inclusion in the top 50 fast-growing tech companies according to Deloitte and brought it the Cool Vendor title from Gartner. The company has representative offices in the United States, India, the Netherlands, UAE, Saudi Arabia and Singapore.
Qwikcilver – a supplier of corporate cloud software in the segment of gift cards and loyalty programmes. The company's product enables customers to use pre-paid physical and virtual gift cards at over 10,000 premium branded stores, on e-commerce portals and in mobile apps. Qwikcilver has a licence from the Reserve Bank of India for using prepaid payment instruments. At the end of the financial year 2016, the company reached a stable positive net income with a gross merchandise value of about USD 300m, and is set to continue doubling its results every year.
Wooplr – a female fashion mobile platform. The company has developed a mobile shopping application with customised offers for users. Wooplr redefines web communication and sales of women's clothing, using a very scalable platform with a viral approach. The female fashion segment of the Indian Internet is so far under-developed, but it is growing at an extremely rapid pace. According to some estimates, this market will amount to USD 20bn by 2020, with fast fashion accounting for 50% of it. Wooplr has created an integrated platform that brought together 200 brands, 10,000 opinion leaders and 3m female customers.
Licious – a company building India's first national brand in online meat sales. The company manages the entire value creation chain from sourcing suppliers and meat processing to delivery of meat products using a cold chain with controlled temperatures to ensure superior quality for end consumers. Licious estimates the Indian market of fresh meat and meat products at USD 7bn annually.
Sistema Rusnano Capital
Sistema Rusnano Capital is a joint private equity fund established by Sistema and the state-owned corporation Rusnano in August 2016 on a 50/50 basis.
Target fund size: up to USD 100m (capital will be committed to the fund in equal shares as the need to finance deals arises)
Fund's life: 7 years (with a possibility of a 3-year extension)
Investment focus: Technology, microelectronics, automated control systems, special communications systems, software for comprehensive security systems, robotics and on-board control systems, energy and energy efficiency. Geographically, the fund is focused on Russia, the European Union and Israel; 50% of investment will go to "Russia-related companies" that use nanotechnology.
Investment criteria: The average ticket is USD 5-20m; allowed targets: companies at the growth stage or at the late venture stage with a working product (the latter may not take up more than 20% of the portfolio).
The fund was established in August 2016. A professional team with a track record in the venture capital industry was hired. A total of 120 projects were reviewed by the end of 2016.