LetterOne
 | |
| Company type | Private |
|---|---|
| Industry | Investment management |
| Founded | 2013 |
| Founder | Mikhail Fridman |
| Headquarters | Luxembourg |
Number of locations | Worldwide |
Key people | Jonathan Muir (CEO)[1] Vitalij Farafonov (COO) Mervyn Davies (chairman) |
| Products | Asset management |
| Website | www.letterone.com |
LetterOne Holdings S.A. (LetterOne) is an international investment business based in Luxembourg. Its investments are focused on the telecoms, technology and energy sectors.
It has four main units: L1 Health, L1 Technology, L1 Retail, and L1 Energy,[2] all of which are supported by L1 Treasury Services, which manages the group's liquidity.[3]
LetterOne was set up LetterOne in 2013 as part of a broader new investment vehicle using the proceeds from the sale of TNK-BP.[4] Co-founders Mikhail Fridman and Petr Aven stepped down from the company in early March 2022, after the EU imposed sanctions on them in the wake of the Russian invasion of Ukraine.[5] The board now includes Mervyn Davies, Jonathan Muir, Franz Humer, Richard R. Burt, and Wulf von Schimmelmann.[6]
History and major assets
As of 31 December 2014 assets managed by LetterOne amounted to approximately $25 billion. The sources of these assets are funds from the sale of TNK-BP, but also from assets invested in prior to the L1 Group's formation. These include VimpelCom, Turkcell and private equity investments. The company has announced plans to invest in global oil, gas, telecoms and technology sectors.[7]
On 4 March 2015, the Secretary of State for Energy and Climate Change, Ed Davey, gave Fridman a one-week deadline to convince the UK government not to force him to sell the newly acquired North Sea oil and gas assets.[8] A senior western oil executive said the UK was entering "uncharted territory" by intervening publicly in a corporate transaction over fears of the effect of future sanctions against Russia.[9]
In October 2015 LetterOne sold its North Sea Oil fields to Ineos, the chemical company, for an undisclosed sum.[10] The Financial Times has since reported that LetterOne has been told in a letter from a senior government official that the previous Energy Secretary's decision to require the sale of the North Sea fields ‘is not a judgement on the suitability of LetterOne’s owners to control these or any other assets in the UK.[11]
On 14 October 2015 LetterOne Group announced that it had agreed a deal to acquire German utility Eon’s interests in three producing Norwegian fields, located in the North Sea. Norway’s oil minister said that approval would be handled ‘in the usual way’[12]
On 2 March 2015, it was announced that Lord Browne was the Executive Chairman of L1 Energy, and would be renouncing his other roles to build a major new oil and gas company from scratch.[13] In October 2021, Browne left LetterOne as well as his duties of chairman of the board of directors of Wintershell Dea, where LetterOne`s share was equal to 33%.[14]
Units and investment areas
As of 2023, the firm had four main business units: L1 Health, L1 Technology, L1 Retail, and L1 Energy,[2] the latter of which is an oil and gas investment company[15] formed by LetterOne in 2015.[13] All four units are supported by L1 Treasury Services, which manages the group's liquidity and financial investments, including private equity holdings.[3]
LetterOne invests through strategic equity holdings in listed companies, or through the ownership of private companies.[3]
Apart from particular sectors, LetterOne participates in private equity funds[3] such as those operated by Pamplona Capital Management,[16] a specialist investment manager that provides an alternative investment platform across private equity, fund of hedge funds and single manager hedge fund investments. They manage assets for a variety of clients including public pension funds, international wealth managers, multinational corporations, family offices and funds of hedge funds.[17]
Key people
Jonathan Muir serves as LetterOne's chief executive officer (CEO), while Vitalij Farafonov serves as chief operating officer (COO).[6]
Fridman and co-founder Petr Aven stepped down from the company in early March 2022, after the EU imposed sanctions on them in the wake of the Russian invasion of Ukraine.[5]
Board of directors
The board of directors of the L1 Group is the company's highest decision making body and is responsible for setting the investment strategy and making investment decisions. In 2023, the five-member board of directors included:[6]
- Mervyn Davies (Chairman)[1][6]
- Jonathan Muir[6]
- Franz Humer[6]
- Richard R. Burt[6]
- Wulf von Schimmelmann[6]
See also
References
- ^ a b "Our people". LetterOne. Retrieved 2 March 2022.
- ^ a b "Our Businesses" ([1]); LetterOne (letterone.com); retrieved on 20 January 2023
- ^ a b c d "fastFT | Financial Times". www.ft.com.
- ^ Leroux, Marcus. "Fridman may sell North Sea assets". The Times.
- ^ a b Thomas, Daniel; Seddon, Max (2 March 2022). "Mikhail Fridman loses control of LetterOne after sanctions". Financial Times. Retrieved 2 March 2022.
- ^ a b c d e f g h "Our Board" ([2]); LetterOne (letterone.com); 2023; retrieved on 20 January 2023
- ^ "Fridman's Alfa Group sets up energy fund, to invest $20 bln". Reuters. 17 June 2013.
- ^ "Russian oligarch Mikhail Fridman given North Sea deadline". BBC.
- ^ "Downing Street behind challenge to Mikhail Fridman's North Sea deal". Financial Times.
- ^ Khan, Mehreen (11 October 2015). "Billionaire Jim Ratcliffe snaps up North Sea oil fields" – via www.telegraph.co.uk.
- ^ "Ineos targets further North Sea assets in wake of $750m deal". Financial Times.
- ^ "Russia's Fridman spends $1.6bn on Norwegian oil and gas fields". FTinancial Times.
- ^ a b "Ex-BP boss aims to build major energy industry player from scratch". The Guardian.
- ^ "Russian tycoon warns rapid switch from gas is irresponsible". Financial Times. 6 November 2021.
- ^ "Browne makes dealmaking comeback". Financial Times.
- ^ "A Russian American invests in Europe".
- ^ "Company Overview of Pamplona Capital Management LLP".