Art of investments


VTB Capital Investment Management successfully completed Grid Dynamics deal

May 29, 2017

VTB Capital Investment Management has successfully completed the sale of Grid Dynamics, a project held by “VTB — Portfolio Investment” — a closed-end long-term direct investment mutual fund (the “Fund”). The RUB 3 billion fund was launched in 2008. VTB Group and Russian Venture Company were the Fund‘s shareholders.

The Fund and other shareholders’ stakes were acquired by Automated Systems Holdings Limited (ASL), a large, diversified Chinese IT company.

The value of the divestment exceeded US$ 128 million with the Fund’s stake totalling 22.4%. Based on the initial investment the Fund’s ROI, will exceed 15x.

Vladimir Potapov, Chief Executive Officer of VTB Capital Investment Management said: “This is a classic example of a well-performing venture investment that has been profitable for the entire portfolio. Grid Dynamics is currently the leading provider of scalable IT solutions for Big Data and employs more than 400 professionals from Russia. I am confident that it will continue creating jobs and promoting innovation in the Russian economy. The Fund’s returns in this deal have again demonstrated the professionalism of the team.”

Grid Dynamics is the leading developer of cloud applications for high-load distributed e-commerce platforms, finance and other B2C segments, serving Fortune 500 customers.

The deal is expected to produce mutual synergies with ASL gaining a foothold in the US market, and Grid Dynamics entering Southeast Asia, including China and Hong Kong.

Magomed Askhabov, Head of the Venture Capital Department at VTB Capital Asset management, said: “This has been the largest and most successful deal for VTB Capital’s venture business to date. The reputation of the portfolio team is built on transactions such as this one. Grid Dynamics’ founders and team have made a major contribution. Through their hard work and effort, they have built an outstanding, successful company in a highly competitive US market, attracting a number of major international strategic investors.”

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