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S-Group Ventures Fund Closes a Deal to Exit from RMT Company

16.10.2020

The management company S-Group Capital Management, managing the property of the closed-end investment fund of incredibly risky (venture) investments — S-Group Ventures, made a deal to exit the Russian manufacturer of thermoelectric micromodules (TEMM) RMT, LLC.

Closed-end unit investment fund of incredibly risky (venture) investments (CEIF OR (V) I) S-Group Ventures was established with the participation of RVC capital in 2008. The Fund's investor is also Severgroup LLC, an investment company that manages assets in the interests of Alexei Mordashov.

The buyer of 39.48% of RMT shares owned by S-Group Ventures was Ferrotec Europe GmbH. In the course of the complex transaction, RUSNANO JSC also sold its stake in RMT. The return on the deal for institutional investors reached 4x (return on investment).

RMT entered the portfolio of the S-Group Ventures Fund in 2010. Today, the company occupies 16% of the global TEMM market due to developing complex products while maintaining low cost and high efficiency of elements. The products' primary consumers are in the USA, Europe, Southeast Asia, and other regions with developed Opto-, micro- and nanoelectronics production. Due to the industry's geographical specifics, up to 96% of RMT's revenue comes from exports. The customer pool is diversified both in terms of regions and critical sectors.

TEMMs are in demand today in the field of telecommunications: in 5G communication networks and broadband GPON access, data centers, in the field of microelectronics for the production of sensors and semiconductors. In medicine, TEMMs are used in wireless health monitoring sensors and laboratory equipment. RMT products are also used in the space industry, for example, to cool some satellite components.

Alexey Basov, Deputy General Director — Investment Director, RVC
We highly appreciate the results of the management team's work and the RMT management, which made it possible to stir the interest of one of the world leaders in the manufacturing industry in the company's technologies. In ten years of being in the fund's portfolio, the company has managed to develop a unique product in its niche, gain international consumers' trust, and a strong position in the market. For RVC and other Fund investors, this deal brought an excellent financial result — its amount was several times higher than the initial investment.

Ferrotec Europe GmbH is part of Ferrotec Holdings Corporation (https://www.ferrotec.co.jp/en), a diversified technology company with a global presence in a wide range of end products, manufacturing systems, and industries. Ferrotec's production facilities are based in Russia (Ferrotek Nord, JSC), the USA, Germany, Japan, and China.



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