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Alexander Volchkov


 


Contribution to success of the team's projects is what makes us professionals.  Alexander Volchkov provides the commentary when these conclusions can help entrepreneurs in their quest for better opportunities in the Market for Control.

Contribution to Selected Projects

UVC Eastern Europe

1. 2001-2003 Private Equity Investment in North American Company: In 2001 made private equity investment in NewspaperDirect, Inc – the leading innovator of digital delivery and print-on-demand of newspapers, which capitalizes on proprietary Russian information technology. Won the deal beating three international funds, which also launched bids for the stake. The implied valuation in the next private placement revealed IRR over 50% for 9 months.

2. 2001 UVC Ltd. Entry into Russia and Eastern Europe: Created from scratch an efficient fund management company (UVC Eastern Europe) for a private equity fund. Built a dedicated investment team. Developed the investment strategy of the fund.

3. 2002 Diversifying the Fund Management Company: Created M&A practice in UVC Eastern Europe. Won several sell-side mandates, beating international majors in Corporate Finance. Turned UVC Eastern Europe into profitable firm. Revenues 2002 were thrice as high as the Company had spent since the inception by the end of 2002 excluding bonuses for 2002.

4. 2002 M&A Advisory Practice: Won mandate for selling blocking stake in a machinery producer with Revenues over $70 million. Discovered and captured an opportunity to accumulate and sell majority stake. Negotiated share purchase agreement and escrow agreement with deal value well over $50 million. Closed the deal December 2002.

AO Sistema Telecom

5. 1998 Corporate Restructuring: Created and led in-house M&A and private equity practice. Recommended and implemented replacing the management and made financial turnaround of trunk communications company ZAO Center-Telco and an Internet access provider ZAO PTT-Teleport Moscow. The companies became profitable and cash flow positive.

6. 1999-2000 Private Equity Investment and Exit: Accumulated majority stakes for Sistema Telecom in three regional GSM-operators, valuing and acquiring blocking stakes in these companies. Sold these combined and restructured GSM operators to MobileTelesystems (NYSE: MBT) and realized tens of millions of USD in capital gains.

7. 1999 Growth through M&A and Corporate Restructuring: Merged two Internet access providers ZAO PTT-Teleport Moscow and ZAO Trans-TS; developed strategy for the integrated company; together with the management of the company, launched the first ADSL-access offering in Russia, established new brand for the company (now one of the most recognizable brands in Russia – “Brand of the Year 2002”). The company (Tochka.Ru) became indisputable leader of high-flying ADSL-service in Russia. Prepared a merger of ZAO PTT-Teleport Moscow with MTU-Intel.

AIG- Brunswick Millennium Fund

8. 1996 Private Equity Investment in the Largest Russian IT Company: Led the buyer’s in-house due diligence team examining IBS Group.

9. 1996-1997 The Fund’s Origination: Provided research on several industries, contributed to shaping investment criteria and investment process. Together with a colleague developed entry strategy in Russian telecommunication industry. Explored an investment opportunities in Russian publishing and printing business. Explored investment opportunity in a major Moscow retailer – Detskiy Mir.

Selected Publications

4.08.03 www.opec.ru Russian Economy Offers Numerous Investment Opportunities
Why does much larger international capital seek opportunities in Russia now? Why have Russian investors spent considerable buying power on Western assets at the same time? How can investor perspective help the entrepreneur shape his/her project?
 

in Russian

26.03.03 www.2b.finam.ru MTS Buys Out Other Shareholders from Kuban GSM
MTS preferred buying out other shareholders to increasing its share through new equity round. This is more direct and efficient way to secure control while money for expansion can yield better results in other projects of MTS.
 

in Russian

13.03.03 www.2b.finam.ru Deutsche Telecom Sells Call Option on 10-percent Stake in MTS to Sistema Telecom: Underpinnings and Consequences
Restoring financial leverage to normal level, Deutsche Telecom has to recover cash from its investments outside its core market - Germany. Yet the performance of MTS made DT to find a way to preserve sizable stake in its prominent foreign investment. Sistema Telecom grabbed the opportunity to secure control over MTS minimizing  premium for control.
 
in Russian
28.02.03 www.2b.finam.ru One Buyer - One Seller
The competitive landscape in mobile telephony in Republic of Tatarstan had made MTS the only reasonable buyer for TAIF-Telecom and at the same time left MTS with this regional cellular operator as the only viable alternative not to loose the promising market to the nationwide competitors. The time was against both negotiating parties.
 
in Russian
03-09.02.03 "Promyshlenny Ezhenedelnk"
 (weekly)
Venture Capital in Russian Realities
North American or European experience of VCs is  misleading in Russia, where the crucial deficit is management teams and professionally organized companies and not the promising business niches. Lack of organization and professional management is most dangerous in innovative companies of TMT sector.
 
in Russian
31.01.03 www.2b.finam.ru Acquisition of StavTeleSot - Mutually Beneficial Deal?
The shareholders of StavTeleSot had had clear exit perspective ahead of them but they failed to capture growth opportunities before their selling out to Vympelcom due to numerous unresolved contradictions among them.
 
in Russian
27.01.03 www.2b.finam.ru Merges in Telecoms Become More and More Predictable
Recent merger of Sovintel and Teleross is an example of consolidation efforts by major telecom players, who have started building nationwide operators in market segments other than mobile telephony.
 

in Russian

       

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