Launch of Redgate Capital

16 Dec 2008

Redgate Capital - New Asset Management and Financial Advisory Company Launched

Redgate Capital is a new asset management and boutique investment banking company established with a clear focus on Baltic, Russian and CIS countries’ investments.

Redgate Capital brings forth a vision of a new financial services company based on the experience of its team and co-operation partners. The company offers asset management services with a focus on Russian, CIS and Baltic countries to Baltic, Scandinavian and Western European investors, as well as financial advisory services to mainly Baltic clients.

The founders of Redgate Capital are Veikko Maripuu – who boasts 16 years of experience in banking, capital markets, and asset management for the investment bank Suprema (later Evli Securities), and was the partner and Head of Asset Management; and Mart Altvee – who has 15 years of experience in management and banking, and the former Head of SEB Estonia. Aare Tammemäe, who will join the team, has 16 years of banking, real estate, and financial management experience and has worked for the Port of Tallinn, Nordea corporate finance and was the CEO of Arco Vara real estate company.

Introducing Redgate Capital, Mr Mart Altvee commented, „The economic slow-down in Estonia and the Baltics and the crisis on global financial markets is spreading to the real economy. For companies operating in the Baltic economic environment the coming years are critical, yet offering good opportunities for securing future growth in the case of rational behaviour.“

Redgate Capital is looking to focus on three core areas – portfolio and fund management services, alternative investment services and financial advisory services to private and institutional investors in the Baltics, Scandinavia and Western Europe.

Asset Management and Fund Management: Redgate Asset Management

Redgate Asset Management offers traditional asset management and fund management services. The activities of Redgate Asset Management are licensed by the Estonian Financial Supervision Authority. According to Mr Veikko Maripuu, „Due to the global financial crisis, value of all assets but also solid cash rich enterprises and quality assets in the region that we know best – thanks to our former experience in Russia, other CIS countries and the Baltics – have decreased dramatically as a result. Our goal is to implement a focused investment strategy, experience, and contacts to find assets with the best potential and value and invest in them long term, taking maximum advantage of the distressed market situation.”

The main activities of Redgate Asset Management are fund and portfolio management. The first investment funds will be launched together with Redgate’s Luxembourg partners next year.

Alternative Investments

The other area of Redgate’s activity is alternative investments. In 2009 the company plans to introduce a distressed investment-type real estate and private equity funds. „Timing of the funds is very important for us,” says Mr Altvee, “Real estate and other assets prices are currently decreasing and will drop more. Companies need changes and additional financing in order to survive. This offers investment opportunities in real estate as well as private equity products. We'll be going out to the markets in the first or second half of next year.”

Financial Advisory

The third area of expertise of Redgate Capital is financial advisory, concentrating on corporate finance (M&A) and capital raising transactions for corporate clients and entrepreneurs in the Baltic region. Mr Aare Tammemäe comments that „The main obstacle to many businesses and investments is the lack of finance. In today’s context it could be a question of survival. Companies need financial solutions and financing and the bank credit crunch has created a demand for alternative sources of financing,“ adding that “companies are now ready to offer investors new financial instruments like bonds and preferred  stocks. In the coming years we will see growing industry consolidation where stronger companies and competitors merge and smaller or highly leveraged companies disappear or are taken over. There is growing number of business, but we will concentrate on the deals that we know we have the capacity and experience and can deliver results on. At the same time, due to the current downbeat environment of investment banks, we are also well placed to attract additional top professionals to the Redgate Capital team.”

The headquarters of Redgate Capital is situated in Tallinn, Estonia. At the moment strategic co-operation agreements are being formed with partners in Luxembourg, Scandinavia, Poland, and Lithuania. So far, Redgate has 12 professionals working for the company.