Sistema Rusnano Capital
Rusnano Sistema SICAR is a private equity fund established by Sistema and Rusnano in August 2016.
The fund's size is up to USD 100 mn (capital will be committed in equal shares as the need to finance deals arises). The fund is open for outside investors. The average single investment size is USD 3-20 mn for growth stage companies or late venture stage companies with working products. Geographically, the fund is focused on Russia (at least 50% of investments in monetary terms), the CIS, the EU and Israel. Life: 7 years (with a possibility of a 3-year extension).
The fund's investment focus is the technology sector: information technology, robotics and onboard equipment, software and cloud technologies, communication equipment and end-to-end solutions, renewable sources of energy and energy saving technologies (including fuel cells), microelectronics, automated control systems, special communications systems, and software for comprehensive security systems.
The fund has a professional team with a track record in the venture industry. The Investment Committee of the fund comprises three directors from Sistema and three from Rusnano. All resolutions are passed unanimously by the fund's board of directors, which consists of three members
The fund is in the investment phase. As of the end of 2017, Rusnano Sistema SICAR invested USD 16 mn in a number of technological companies and intends to invest in five more projects in 2018. Thus, the fund's target investments will amount to 40-45% of its committed capital.
Russian developer and manufacturer of unique 3D construction printers able to build a house with a total area of up to 130 sq m in 24 hours directly at the construction site. This technology has no global peers. The 3D printer competes with conventional technologies in terms of cost and significantly outperforms them in the speed and ease of construction. The business model is based on provision of wall construction services in partnership with local companies to reduce the printer replication risks and control the construction process. Applications to patent the technology have been filed in 146 countries.
High-tech oilfield services company that offers well diagnostics after multi-stage fracturing. Oil wells are diagnosed through tracer analysis – by introducing propping agents marked by reporting markers that are several microns in size. It has a number of competitive advantages in terms of price and accuracy
Sistema Finance S.A.
Sistema Finance S.A. is Sistema's investment platform focusing on investments in Europe.
- investments in public and non-public mid-cap companies generating positive cash flow with attractive growth prospects and focus on Germany;
- Real Estate: investments in rental properties in highly liquid markets of the EU.
Investments in real estate are made by the company's subsidiary Sistema Capital Partners (SCP), which also offers legal support for transactions and asset management for Western institutional investors in the segment of Russian commercial real estate and manages the publicly traded Luxembourg fund Arista SICAV-SIF.
The assets under management of Sistema Finance amount to EUR 446 mn, including EUR 208 mn of Sistema's and co-investors' own funds. The average size of one investment is EUR 10m-50m, and investments are held for 1 to 4 years.
World's leading foundry, which uses state-of-the-art technologies and has a considerable practical experience, with a 30% global share in the segment of cylinder crankcase castings for engines. Equity stake: 32.9%.
Leading European producer of high-tech steel and iron castings, with a focus on wind power generation and transmission mechanisms. Equity stake: 22.8%.
Ambulantis BSW GmbH is a fast-growing operator of home care services. Equity stake: 28.6%.
High Street Prime II portfolio
Includes three shopping centres in Flensburg, Lubeck and Bochum (Germany). Portfolio strategy: creating added value through proactive asset management (renting out vacant areas, repositioning, capital improvements). Stakes in projects: 33-45%.
Luxembourg real estate fund managed by Sistema Capital Partners. The fund has three commercial properties (two 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. Tenants: Perekrestok, Adidas, Levi’s, l’Occitane, KFC, McDonald’s, KFC, and offices of 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).
In June 2017, the company exited two investments: High Street IV and High Street Prime I. These portfolios of rental properties – a total of 29 assets in several German cities with an aggregate area of over 120,000 sq m – were bought by BVK. IRR of the investments amounted to 28-36% in EUR.