Investment Strategy

Principals of our investment strategy

  • We invest in companies with leading market positions or with unique products and technologies
  • We invest in companies which have the potential to generate stable cash flows and which have balanced risk profiles
  • We focus on partnerships and prefer investments with current management, existing shareholders or selected financial sponsors
  • We focus on investments in industries where Sistema PJFSC has a presence and investment expertise in Russia
  • We support companies which can benefit from potential geographical expansion into Russia and promising technological trends in order to create synergies between Sistema PJSFC and Sistema Finance
  • We are committed to establishing long-term partnerships and are not restricted to strict holding periods
  • We are flexible in both the type and structure of potential partnerships and have a “pari pasu” partnership approach
  • We have a lean and transparent corporate governance structure and can decide promptly about investment opportunities
  • We aim to enhance our in-house investment expertise in international markets through co-investments and cooperations with leading and reputable investors who possess the necessary investment expertise

Investment approach

Mid-cap segment:

  • Companies operating in sectors where Sistema PJSFC has investment expertise
  • Market leaders with established market position and the potential to consolidate markets
  • Unrivalled competitive advantages and established entry barriers
  • Potential for expansion, especially into the Russian market
  • Transparent ownership structure, best-practice corporate governance and experienced management teams

Real estate:

  • “Buy-lease-sell” model across usage types with considerable upside potential through active asset management and refurbishment or redevelopment
  • Investments in residential and commercial real estate via our subsidiary Sistema Capital Partners (http://www.sistemacapitalpartners.com/)
  • Development in both commercial and residential segments which have significant upside potential and experienced development partners

Key investment focus

Mid-cap segment:

  • Pharmaceuticals
  • Healthcare
  • Industrials
  • Automotive
  • High-tech
  • Chemicals

Real estate:

  • Buy-lease-sell
  • Development

Geography:

  • Germany / DACH region (mid-cap investments)
  • Europe and the US (real estate)

Partnerships:

  • Co-investments
  • Management teams
  • Existing shareholders