Welcome to Prosperity

Prosperity Capital Management is one of the largest Russia-focused asset managers in the world,
with around USD 4.6bn of assets under management

Prosperity divested KTK PJSC shareholding

Prosperity and SAFMAR Group agreed purchase by Kilton Overseas Limited of 27.24% shareholding of KTK PJSC, which is managed by Prosperity. The transaction was closed on October 18, 2019. The total transaction consideration amounted to USD 82.9m (or 196,27 rub. per share in ruble equivalent at the Central Bank rate on the date of the transaction). Kilton will make a mandatory offer to acquire all other shares of KTK PJSC at the price of the transaction with Prosperity in accordance with Russian legislation.

Perception versus reality revisited

The portrayal of Russia is often very one-sided, filled with stereotypes and negative assumptions. A recent Financial Times article on four Russia-focused books was prefaced with the text below. Whilst this is the standard image that most people have of Russia, we would argue it is a misleading image.

State-owned enterprise dividend update – onwards and upwards

Russia’s march towards better corporate governance and returns to shareholders continues and is even gathering pace.

The relationship between the Russian ruble exchange rate and the oil price

The Russian economy has been gradually diversifying away from oil and gas despite the massive and highly profitable production of hydrocarbons in the country.

Russia ranked 28th in the World Bank’s Doing Business report

Russia has continued its advance up the World Bank’s Doing Business rankings, placing 28th out of 190 countries in the 2020 report - up 3 positions from 2019. Russia now ranks above several OECD nations, including Japan, Spain and France amongst others. Notably, Russia is the highest ranked BRIC economy. Over the past year, the World Bank has recorded “strengthened minority investor protections” through "greater corporate transparency”, improvements to the ease of tax collection and faster access to electricity. Prosperity continues to believe that the World Bank has not appropriately assessed and scored certain minority shareholder related reforms and intends to assist in representing this position to the assessors. Russia’s rapid and striking ascendancy in the Doing Business rankings reflects our on-the-ground view of the improvements that we have seen across the Russian economy in recent years.

"We always tell ourselves that we own parts of actual companies, not simply pieces of paper."

Mattias Westman, Founding Partner

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Strategies

PCM is one of the largest portfolio investors specialising in investment in Russia and the FSU countries. PCM is currently managing assets worth around USD 4.6bn.

Explore Strategies

Strategies

Prosperity Capital Management employs the same investment philosophy and methodology across all of the assets under management, though broadly the investment vehicles can be separated into two strategies; fundamental value and special situations.

The fundamental value strategy seeks to access companies that have come further along the transformation from Soviet-era “production units” to more modern “Western-style” corporations, whilst the special situations strategy seeks to identify the triggers for these changes much earlier in the process.

There is a level of overlap between the two strategies and consequently the investment vehicles also. In general, as the fundamental value strategy is investing in companies that are more developed, they tend to be larger, more visible, better listed and more liquid than many of those in the special situations strategy.