EBRD invests in Russian IT outsourcing provider MAYKOR

By Richard Wallis

The EBRD has joined forces with the Russian Direct Investment Fund (RDIF) and the CapMan Russia II Fund, a private equity fund in which the Bank is an investor, to support MAYKOR, the leading Russian IT outsourcing and service provider.

The three partners will invest up to USD 100 million in a series of stages in MAYKOR’s equity that will allow the group to grow its share of the Russian IT market, whose turnover exceeded USD 24 billion in 2012.

The RDIF will invest USD 50 million – with the EBRD and CapMan Russia II contributing the remaining part.

The new funds will support MAYKOR’s growth strategy in order to increase the scale of its operations, as well as extend the company’s geographic reach across Russia.

MAYKOR has a leading market position in Russia and focuses on the comprehensive one-stop-shop servicing of IT equipment, facility systems and business applications. Founded in 2010, MAYKOR services over 1,000 large and medium clients in various industries across the country and employs over 3,000 certified engineers.

In addition to its equity investment, the EBRD will assist MAYKOR in implementing the highest corporate governance standards.

MAYKOR is the third Russian group in which the RDIF and the EBRD are co-investors.

In January 2012, the Bank acquired a 6.29 percent stake in Russia’s Moscow Exchange, the first such investment by the EBRD in a trading exchange in its countries of operation. The RDIF initially bought a 1.25 percent stake in the Moscow Exchange, which has since been increased.

Subsequently, the RDIF bought a stake in Russian power generating company OGK-5, in which the EBRD is a shareholder.

The RDIF, Russia’s newest sovereign wealth fund, was established in June 2011 to make equity investments, primarily in Russia. Its managing company is a 100 percent subsidiary of Vnesheconombank, Russia’s development institution.

In each investment it makes, the RDIF is mandated to secure co-investment that as a minimum matches its own commitment, thus acting as a catalyst for direct investment into the Russian economy.

Earlier in 2013, the EBRD committed up to EUR 50 million for the launch of the CapMan Russia II Fund which invests in small and medium-sized companies. The fund’s first closing took place in March 2013 and raised around USD 124 million. The MAYKOR transaction represents this new fund’s first investment.

MAYKOR Group (Service Holding Company LLC) is the largest group of companies on the Russian service and outsourcing market and specializes in comprehensive servicing of IT equipment, building utility systems, and business applications. MAYKOR Group's mission is to ensure efficient operation and development of the infrastructure of large and medium-sized businesses throughout the entire country. With its own network of 83 branches and 400 local divisions covering the entire territory of Russia, MAYKOR Group provides services based on the "one-stop shopping" principle. The company has over 3,000 certified on-staff engineers.

MAYKOR Group has a customer base of over 1000 companies, including some of the largest geographically distributed companies in all industries. MAYKOR Group has a one-of-a-kind competency center, advanced specialty training programs for its technical experts, a well-developed logistics infrastructure, an automated service monitoring and control system, and a quality management system compliant with international ISO standards. MAYKOR Group's website — www.maykor.com

CapMan Russia www.capman.com

CapMan Russia is a leading Russian private equity manager focused on small to mid-cap Russian growth companies. The team has made 40 investments and 28 exits since 1996. The latest fund held a first closing of €97 million in 2013. The team includes 12 people in Moscow. CapMan Russia is part of CapMan Group, a leading private equity firms in the Nordic countries and Russia, with assets under management of €3.3 billion. CapMan has five key investment partnerships - CapMan Buyout, CapMan Russia, CapMan Credit, CapMan Public Market, and CapMan Real Estate - each of which has its own dedicated investment team and funds. Altogether, CapMan employs 105 people in Helsinki, Stockholm, Oslo, Moscow and Luxembourg.