A Russian Debt Collection Agency is in Line for a Successful Year

Russia’ s leading debt collection agency will have the most successful year in its history.

Russian retail banking nearly ground to a halt in 2009. As a result, most collection agencies were starved for fresh, collectable NPLs.

But while other Russian collectors were retrenching, Moscow-based Pristav Collection Agency doubled its customer base; increased collections in ruble terms by 54%; and increased revenue by 63% in ruble terms. The Company also grew substantially in dollar terms with record profits. These milestones were achieved while keeping employment basically flat.  

Said Artur Aleksandrowicz , Pristav CEO, “The collection business is about efficiency. We don’t aim for high volumes or lowest prices; we will be the most efficient, customer friendly and profitable provider.”

The GREATER EUROPE DEEP VALUE Fund (GEDVF) invested in Pristav’s parent, AJ Prospect Capital,  during its post start-up phase in Spring 2007. GEDVF is based in Moscow and advised by Wermuth Asset Management.

Said Wermuth CIO, Andreas Boesenberg, “The financial crisis paralyzed Russian retail lending for a year. But Pristav had reengineered its processes, upgraded segmentation technology and implemented judicious cost controls using Western best practices. That is why Pristav succeeded in a downturn.”

Said Prospect Chairman-founder, David Jones, “As Russian banking recovered last summer, Pristav became highly profitable. Pristav now sees the need to step up investments in its brand and technology to capitalize on long-term growth trend in NPL management.
We will also leverage our superb customer base for selling other credit management services. “

Wermuth Asset Management has been actively involved in the  Company’s development with two Wermuth appointees serving on Prospect’s board of directors.  An exit is anticipated within the next 18-24 months. Pristav is seen by Wermuth as a key driver in the development of Russian consumer finance.