banking and capital markets
March 28, 2012
Moscow Investment Banks VTB and Troika Dialog Square Off
Russia's investment banking sector can grow rapidly in the next 20 years as New York and London shrink, says Todd Berman, investment banking chief at Moscow's Troika Dialog. Which is why he's setting his sights on crosstown rival VTB Capital.
By Craig Mellow
TO MANY OBSERVERS, investment prospects in Russia have taken a turn for the worse. The stock market has declined by 9 percent over the past year, companies have postponed a raft of IPOs, oligarchs have been sending money out of the country at a prodigious rate, and antigovernment protests have drawn tens of thousands of people into the streets, an unprecedented sign of instability in the Vladimir Putin era.
To Todd Berman, though, Russia is the land of opportunity. Berman is the freshly minted chief of investment banking at Troika Dialog, a Moscow-based firm that was acquired in January by giant, state-owned lender Sberbank. Berman believes Troikas market skills, combined with Sberbanks deep pockets and corporate lending relationships, can create a national champion. Troika is hiring aggressively in a bid to fulfill that goal.
The investment banking sector here can grow rapidly for the next ten or 20 years while New York and London are shrinking, Berman tells Institutional Investor during an interview at Troikas headquarters, one block from the Kremlin.
Berman and his colleagues have their sights set on crosstown rival VTB Capital, an arm of the countrys No. 2 lender, state-controlled VTB Bank. Operating with the implicit backing of the government, the bank built Russias leading investment banking franchise from scratch over the past four years by exploiting its corporate relationships and wielding a big checkbook to raid foreign houses for talent. Now Moscow bankers expect Sberbank to attempt a similar feat with Troika, which it bought....