Zubr Capital
03 april 2015

Zubr Capital successfully exits investments in MTBank

Zubr Capital has successfully closed its first exit deal within a current portfolio under SMH Fund. Investment company Zubr Capital (majority shareholder through SMH Fund) and Horizon Capital (co-investor) have recently sold MTBank (Belarus) to local investors.

Zubr Capital announced its plan for exit from bank investment last year. Oleg Khusaenov, CEO Zubr Capital, commented on the transaction after closing: “The decision to sell is a joint decision of our company and Horizon Capital which has been our co-investors at the bank from 2007. Before making this decision we considered all the pros and cons, discussed arguments from different points. In the result, were solved to sell. It’s the rules of the private equity genre that investors and a portfolio company will finally tear apart. However, I would tell that it was a ‘happy marriage’. A the shareholders of the fund we were enjoying cooperation with dynamic and professional team of MTBank, one of the best management teams in the country”.

During shareholding of SMH Fund and Horizon Capital MTBank has shown rapid growth. The bank underwent substantial changes: change of strategy, implementation of financial management, introduction of new product solutions and structural changes.

As of now the bank is among top three leaders in retail financing. MTBank is a number one as per amount of distributed credit cards. Moreover, the bank has its own unique IT-system. In 2013 MTBank became one of three Belarusian banks having their own processing centre.

Engagement of Horizon Capital by Zubr Capital as its co-investor evoked considerable increase in credit portfolio of the bank. From 2010 till 2013 the growth in financing of corporate clients amounted to 415%, distribution loans to individuals shot up to record 1032%! The total gains of MTBank’s credit portfolio amounted to 564%.

Zubr Capital team is confident that this deal will trigger improvement of investment climate in the country. Such exit event is a marker for future investing in Belarus. MTBank transaction shows that Belarusian private equity market may be successful and lead to positive financial results. 

Zubr Capital is currently managing SMH Fund (MTBank, AtlantTelecom, AtlantConsult) and is raising Zubr Capital Fund I. Last year for purposes of the new Fund formation Zubr Capital acquired Softclub, local leader in IT services for banking and financial industry.