Russian Collection Agency Gets Major Investment

Russian collection agency Pristav and its parent, Prospect Capital Limited, this week announced the completion of a major investment by Greater Europe Deep Value Fund Limited (GEDVF), which is advised by Wermuth Asset Management.

Terms of the investment were not disclosed.

Pristav is a leading provider of retail collection services for major banks, insurance companies, telecom providers and utilities. Headquartered in Moscow, Pristav operates branches in St. Petersburg, Ekaterinburg, Chelabinsk, Rostov/Don, Perm, Tver, Novosibirsk and other major cities in Russia. Pristav’s parent, Prospect Capital, is an active buyer of distressed retail credit portfolios.

In terms of investment performance, funds advised by the Wermuth team have been worldwide leaders in developing markets. Based in Frankfurt, Germany, Wermuth specializes in Russia and Eastern Europe. As of July 2007 Wermuth will be managing over $1.2 billion.

“Retail credit in Russia is growing at 60% per year. Not surprisingly, delinquent debt is growing rapidly as well,” said Pristav General Director, Artur Aleksandrowicz. “As a result of the GEDVF investment, we have the resources to lead the market, providing the highest quality service to our clients.”

Wermuth’s Director for Private Equity, Irina Teplitskaya, added, “GEDVF’s investment in Pristav reflects our strong belief that financial services are Russia is growing rapidly but there is insufficient capacity to meet demand. This investment was part of a strategic plan for GEDVF to participate in financial services by partnering with proven management.”

David Jones, President of Prospect Capital, stated that, “The GEDVF investment means that we have unlimited capacity to become the leader in distressed debt purchases in Russia.”