Jennings selling Renaissance Asset Managers, Kazimir Partners possible buyer - paper
MOSCOW. Dec 25 (Interfax) - Stephen Jennings is preparing to follow up the recent sale of investment bank Renaissance Capital and retail lender Renaissance Credit with the sale of his asset management business, Renaissance Asset Managers (RAM), business daily Vedomosti reported, citing market players.
One of the suitors for RAM is Kazimir Partners, which was founded by one of Jennings' former partners in Renaissance Capital, Frank Mosier in 2002, the paper said. The deal has not been closed yet and the situation is currently "up in the air."
The paper, citing a source close to one of the potential buyers, said the deal would involve RAM management buying out control of the company, but not in partnership with Kazimir Partners, which would get a minority stake.
There are several other suitors for the business, including two Russian companies and one from London, one of the Russian managers said. However, they want to buy 100% of RAM at a price that is equivalent to 1.5-2% of assets under management. One of the companies is Alfa Capital, the paper reported one source as saying. A company employee said Alfa is interested only in the "Russian transparent business" and full control.
Jennings said in an interview at the end of October that RAM has $3 billion in assets under management, that the business is profitable and is growing, though slowly. However, a former manager at the company believes assets under management amount to nearly half of this figure, which means the business could be worth about $30 million. The company does not disclose its financial results.
In mid-November it was announced that the Onexim Group is becoming the sole owner of Renaissance Financial Holdings Limited (RFHL), an investment bank that operates on the international market under the Renaissance Capital brand, and indirect owner of 89% of Renaissance Capital International Services Limited (RCISL), a consumer lending bank that operates in Russia under the Renaissance Credit brand.
Renaissance Group is breaking away from the investment banking division and will focus on asset management, urban development projects in Africa, consumer lending in Nigeria and real estate funds in Russia.
CEO Stephen Jennings will continue to head the group, which now consists of emerging market asset management firm Renaissance Asset Managers; Rendeavor, an urban development business in Africa; Renaissance Credit Nigeria, a recently launched commercial lender; and Renaissance Real Estate in Russia.
