Renaissance Capital (Russian company)

Renaissance Capital

Type	Private
Industry	Finance and Investment Banking
Founded	1995
Headquarters	Moscow, Russia
Key people	Igor Vayn, CEO[1]
Products	Investment Banking
Website	www.rencap.com

Renaissance Capital is a leading investment banking firm originating from Russia that operates in high-opportunity emerging and frontier markets. It is a top-ranked investment bank for M&A, equity and debt capital markets, as well as securities sales and trading. Renaissance Capital focuses exclusively on emerging markets, including Russia, the Commonwealth of Independent States (CIS), and the frontier markets of MENA and sub-Saharan Africa.

Renaissance Capital has no "home office", but rather its businesses are run from the markets it serves. Specifically, the firm's offices are in Moscow, Lagos, Nairobi, Johannesburg, Dubai and Istanbul.^[2] Renaissance Capital also maintains offices in London, New York and Nicosia.^[3]

Renaissance Capital has been part of Mikhail Prokhorov's ONEXIM Group since 2012 when it took full control of the company, ONEXIM Group is one of Russia’s largest private investment funds, with a focus on mining industry, innovative projects in energy and nanotechnology, real estate and other industries.^[4][5]

History

The company was founded in 1995 by a group of founding partners, including Stephen Jennings, as well as Boris Jordan, and Leonid Rozhetskin, Anton Kudryashov, and Richard Deitz.

On September 22, 2008, ONEXIM Group purchased a 50% (minus one share) stake in Renaissance Capital for $500 million (US) dollars following the issuance of new equity. Renaissance Group held 50% plus one share of the voting rights at Renaissance Capital. Renaissance Group's holdings in Renaissance Investment Management, Renaissance Partners, and Renaissance Credit remained unchanged.

On September 23, 2008, Fitch a financial rating company has downgraded Renaissance Capital's individual rating to D from C/D and changed the outlook on the bank's long-term issuer default rating to negative from stable. The move came after Renaissance said that it will sell 50% minus one share to Russia-based Onexim Group in return for an injection of new equity of $500 million. "Fitch views this as a defensive sale at a time of substantial market volatility in Russia and internationally, and when pure investment banks like Renaissance Capital have become increasingly exposed to market sentiment and whim," the ratings agency said. The negative outlook reflected the medium- and longer-term earnings and risk management challenges facing a business that is still very reliant on the markets and investor sentiment towards Russia, Fitch said. The cash injection by Onexim has reduced immediate liquidity risk, but this is likely to be the main area of management focus in the near term.¹ Reference, Polya Lesova, MartketWatch a Dow Jones Company, September 23, 2008.

In September 2009, Renaissance Capital Deputy Chairman Robert Foresman left the firm to become Managing Director/Head of Investment Banking/Country Manager at Barclays Capital in Russia.^[6]

In July 2010, Renaissance Capital paid 207 million rand ($27 million) to acquire Barnard Jacobs Mellet Securities Ltd., the South African stock brokerage.^[7]

In November 2012, ONEXIM Group acquired further stakes in Renaissance Capital which resulted a full ownership of the investment banking division of Renaissance Capital and indirect ownership of 89% the consumer finance bank, Renaissance Credit.^[8]

In late November 2012, Renaissance Capital has published a seminal new book, The Fastest Billion: The Story Behind Africa’s Economic Revolution.^[9] Authored by a group of African economists and respected analysts from Renaissance Capital, the book is aimed to accelerate the world’s realisation that the economies of most African nations have transformed beyond recognition, and are set to surpass the growth seen in Asia and India over the past 30 years.^[10]

References