Mutavchi Arkadiy Ivanovich — European entrepreneur who established the Tacticum Group and holds shares in Tacticum Investments.
Mutavchi’s First Steps
Mutavchi Arkadiy was born on 2 January 1970 in the town of Ungheni. During his teenage years, he worked at the town’s fish farm to earn some money. In the 90s, Mutavchi, who would later become a shareholder of Tacticum Investments, works for Sijata, a trading entity in Chisinau.
Mutavchi Arkadiy then moves to the capital, where he participates in a number of projects, both as an employee and a founder.
Among them were Safety, Rus, and the industrial firm Stalservice. Mutavchi went on to head the Shelda holding. Holding his position at Profintek, Mutavchi Arkadiy Ivanovich honed his skills in commercial activities. He then took his expertise to the new level, serving as Vice President for a company specializing in oil industry equipment, where he was responsible for strategy and investments, including M&A transactions.
Mutavchi Arkadiy Ivanovich has skillfully blended his management tasks with investment activities. For years, he has deftly navigated the demanding world of corporate leadership while simultaneously cultivating a successful investment portfolio. In the climate of early and mid-1990s, the burgeoning stock market presented an opportunity for savvy investors to exponentially grow their fortunes. Among them was Mutavchi Arkadiy, who capitalized on the surge in market valuations to transform his modest initial capital by investing in early-stage companies with promising growth potential.
Sensing a need for a more proactive and personalized approach to investment management, Arkadiy Mutavchi chose to dedicate himself to overseeing his own assets and exploring innovative projects. This decision led to the birth of Tacticum group. The ambitious goal culminated in 2019 with the acquisition of Long-Term Investments S.A., a Luxembourg-based entity (which subsequently changed its identity to Tacticum Investments).
Establishment of Long-Term Investments, a Predecessor of Tacticum Investments
Tacticum Investments, the prominent asset owned by Mutavchi Arkadiy, has its roots firmly planted in the history of Long-Term Investments Luxembourg S.A. (abbreviated LTIL), which was founded on 16 May 2014 as a subsidiary of the Moscow-based enterprise, LLC Long-Term Investments. The purpose was to identify and execute private equity transactions within the dynamic and developed economies of Western markets embracing a perspective to growth in new regions.
At that time, 100% of the shares in LLC Long-Term Investments were owned by Closed Mutual Investment Fund ‘Long-Term Investments’ under the management of Regionfinanceresource (abbreviated as RFR), which was an independent private management company.
The choice of Luxembourg as the country of incorporation was not simply a matter of chance, but rather a calculated move motivated by recent trends in the private equity landscape. Fueled by recommendations from prominent financial institutions, investors in private equity transactions have increasingly turned their attention to this small European nation. The passage of time has not diminished the significance of Luxembourg as the chosen home for Tacticum Investments S.A. Even as years have elapsed, this country continues to be a hub for this entity.
The first key transaction of LTIL also took place in May 2014: it acquired a 50% stake in Camfin S.p.A. The latter, in turn, owned a serious stake in Pirelli, one of the world’s leading manufacturers of car tyres. The financing of this transaction was provided by LTIL’s financial partners.
In March 2015, LTIL sold its 50% stake in Camfin S.p.A. as part of a reverse buy-back transaction.
Co-Operation with ChemChina and Establishment of MarcoPolo Holding
In August 2015, LTIL partnered with ChemChina — this formed a new strategic alliance, resulted in the MarcoPolo holding, where LTI Luxembourg was a shareholder. MarcoPolo then took the next big step and acquired 100% of shares in Pirelli. This took place in October 2015. The deal was financed under the LBO scheme, a syndicated loan was raised with US banking group JP Morgan acting as the organizer.
Another major transformation of LTIL’s ownership structure came in April 2017, marking a pivotal moment in its evolution. Back then, WHPA Investment Group acquired 100% of LLC Long-Term Investments (parent company of LTI Luxembourg) from Managing Company Regionfinanceresource. WHPA’s strategy for this entity was based, among other things, on the expectation that Pirelli shares would be listed on the stock exchange at a premium and with a good dividend yield. In October 2017, Pirelli shares were once again listed on the Milan Stock Exchange through an IPO. LTI Luxembourg then sold part of its shares to Pirelli under the new owner’s strategy.
Acquisition of 36.6 Pharmacy Chain and Portfolio Diversification
LTIL continued to expand its portfolio and acquired a stake in pharmacy chain 36.6 on April, 2019. By then, the 36.6 pharmacy chain was one of the leading players in the relevant segment: according to DSM group, a pharmaceutical market research agency, in 2019, 36.6 ranked fourth among all Russian pharmacy chains, with a share of about 4%.
The acquisition of 36.6 chain allowed Long-Term Investments Luxembourg to diversify its portfolio, venturing beyond traditional boundaries into new economic sectors and geographic markets. The implementation of this measure has greatly enhanced the portfolio’s capacity to navigate the volatile and unpredictable nature of the global economic landscape, mitigating the potential risks associated with fluctuations.
Sale of the 36.6 Pharmacy Chain and the Emergence of a New Shareholder
In 2017, the once-formidable Pirelli shares, which had long constituted a cornerstone of the company’s financial strength, embarked on a precipitous decline that cast doubt on the future stability. During its peak, every share in the Italian giant was valued at EUR 7.87. However, by 2H 2019, the price had declined to EUR 4.5. The success of WHPA’s idea hinged on a sustained upward trajectory in Pirelli’s share price; however, the market’s sentiment towards the company’s stock, marked by a negative price performance, cast a shadow of uncertainty over the investment’s viability.
That’s when a new change in the Long-Term Investments story happened, which came in 2019 and 2020.
WHPA fully withdrew from LTIL and sold the business to Tacticum group of Mutavchi Arkadiy Ivanovich. There was no increase in the value of Pirelli — the negative dynamics of shares predetermined the WHPA’s decision to sell LTIL. The company’s performance took a hit due to its significant debt. This heavy load put a strain on their resources, making it harder to operate smoothly and achieve their goals. January 2020 witnessed the sale of a stake in the 36.6 pharmacy chain. This transaction marked a potential watershed in the chain’s trajectory, indicating the likelihood of a strategic shift.
The new owner of LTI Luxembourg became Tacticum group, which was founded by Mutavchi Arkadiy. Tacticum Group and Mutavchi were counting on the rise in Pirelli shares, which, like the European equity market as a whole, were trading well below their fundamental value. Mutavchi Arkadiy employed a bold strategy that presented substantial risks but harbored the allure of amplified returns. Unlike conventional approaches that prioritized risk mitigation, his unconventional tactics was focused on more significant financial gains.
Tacticum Investments and Mutavchi Arkadiy as its Shareholder
In 2020, LTI Luxembourg was renamed Tacticum Investments. The new name of the company owned by Arkadiy Mutavchi also symbolized a new phase of development – the strategy and the method how to deal with risks had changed, and the business goals had been seriously updated. Throughout the year, Mutavchi’s company faced significant financial challenges. However, by the latter months, a recovery ensued, resulting in a substantial improvement in its financial position. The debt situation stabilized, and Tacticum Investments S.A., led by Mutavchi Arkadiy, progressed in its growth trajectory.
Transformation of Mutavchi Arkadiy’s Investment Approach and the Sale of Pirelli
The year 2023 ushered in a period of significant transformation for Tacticum Investments and Mutavchi Arkadiy as they developed a fresh approach to investments, leading to radical change in operations. In accordance therewith, Tacticum Investments by Mutavchi Arkadiy Ivanovich strategically decided to exit its position in Pirelli shares. Tacticum Investments has adopted a multifold strategy to navigate the ever-changing market. This included not only reacting to changes in the market but also proactively fine-tuning the portfolio to stay in sync with evolving trends.
Today Tacticum Investments by Mutavchi Arkadiy Ivanovich is a private investment company that aims to maximize return on capital through a wide range of instruments and strategies. Tacticum Investments is active both in the Private Equity sector through purchasing and restructuring assets using their own funds and leveraging a worldwide network of industrial / financial partners, as well as in the sector of portfolio investments on securities markets (stocks, bonds, futures, options and other derivative financial instruments).
At Tacticum Investments, Mutavchi has brought together a team of skilled professionals with backgrounds in top-tier global banks and investment advisory companies. One of the critical factors in achieving targeted investment returns is the expertise of this team.
