Two Russian entities – Alfa Capital Management Company and Vsevolod Rozanov, have recently been granted foreign portfolio investor licenses by India’s market regulator.
Alfa Capital Management Company
Alfa Capital Management Company is part of the privately held Alfa Group, a major financial services group in Russia with significant interests in various sectors including oil and gas, telecommunications, media, and utilities. Registered under both category I and II, the company has a rich history spanning 30 years. As per its website, it manages assets amounting to 873.8 billion roubles for approximately 1.7 million clients, including individuals, investment companies, private funds, and charitable organizations. The company is licensed to manage investment funds, mutual funds, and non-state pension funds.
Vsevolod Rozanov
Vsevolod Rozanov, registered under category I, is a well-known investor and board member in several Russian companies, including Nornickel, a prominent name in the mining and metals industry. His prior roles include the managing partner and chief financial officer of AFK Sistema JSFC, a holding company of one of Russia’s largest business conglomerates.
Rozanov’s Connection to India
Rozanov has substantial familiarity with the Indian market. He served as the head of Sistema Shyam TeleService, an Indian telecom subsidiary and joint venture between Sistema and India’s Shyam Group. The company, operating under the MTS brand, was one of several telecom companies whose licenses were revoked by the Supreme Court in 2012. The cancellation prompted high-level discussions, with Russian President Vladimir Putin even reportedly including the issue in his visit that year.
Rozanov’s Ventures in India
In 2016, Rozanov oversaw the establishment of a $50 million Sistema Asia Fund under Sistema Asia Capital, aimed at seeking investment opportunities in India and Southeast Asia. Specifically, the fund intended to invest in two to three Indian startups in the consumer retail and technology sectors every quarter. Rozanov frequented Bengaluru to scout for such investment opportunities.
With these new licenses, it will be interesting to see how Alfa Capital Management Company and Vsevolod Rozanov shape their investment strategies in the Indian market.
