Jacques der Megredichyan: Troika Dialog remains a company whose activities are not indifferent to me. By the way, what do you think are the true causes of the crisis?

05.06.2014 10:10

Jacques Der Megredichyan will work for IT Invest

As Chairman of the Board of Directors, he will be responsible for the development of the company's international business platform and the creation of innovative services.

The new composition of the board of directors of IT Invest was approved on June 3. In addition to Der Megredichyan, who was elected chairman, it included four people: managing partner of Da Vinci Capital Management Oleg Zhelezko, chairman of the board of directors of Russian Funds Sergei Vasiliev, one of the founders and co-owners of the company Vladimir Tvardovsky, as well as Nikolai Dontsov, who has been holding the position since mid-May she holds the position of Managing Director for International Business Development.

Der Megredichyan will oversee the implementation of the strategy, including the development of an international platform and the creation of innovative services. He will also focus on improving management processes, the report notes.

“Jacques has experience in building and transforming a large investment bank, as well as a clear vision of the changed realities stock market, which will help us in creating on the basis of IT Invest a dynamically developing innovative player, in the future a market leader,” comments Oleg Zhelezko on the arrival of Der Megredichyan. “A strong composition of the board of directors is being formed, taking into account changes in top management, this creates the basis for solving the most serious problems,” he adds.

Let us recall that in February, one of the funds managed by Da Vinci Capital Management took 63% of the shares of IT Invest from Russian Funds and management. In addition, under the terms of the deal, the fund had to invest in the development of the company, bringing its capital to 350 million rubles. After this, the company announced the expansion of staff and strengthening of the management team. In particular, Maxim Maletin, as Chairman of the Board, and Nikolay Dontsov joined the team.

“With the arrival of a new shareholder and a strong management team, interesting opportunities for development arise. Building a successful brokerage activity of "IT Invest" on financial market It will be quite a creative process, and I’m interested in participating in it,” Jacques Der Megredichyan is sure.

In 2000-2011, Der Megredichyan headed the business of Troika Dialog as executive director. In addition, in 2004-2011, he headed the board of directors of the RTS exchange, and then the MICEX. Now he heads the board of the Moscow Exchange and is a member of its supervisory board and to the board of directors of NAUFOR. “He is also busy with his own investments in the stock market and direct investments in various businesses from finance to wine,” the financier recently clarified to Vedomosti.

) - Russian-French economist. From 2004 to 2011 Chairman of the Board of Directors of RTS.

Biography

Is of Armenian origin. Graduated from the European Business Institute () and the French Center financial analysis(). In - gg. worked at Credit Commercial de France, was general director of the Brussels branch and chief representative in Russia. In 1996- Deputy General Director of the Moscow branch of Societe Generale bank. Chief Executive Officer for Business Management at Troika Dialog, since 2006 – member of the Board of Directors of the National Association of Stock Market Participants (NAUFOR). On September 5, 2011, he resigned from Troika Dialog.

Write a review of the article "Der Megredichian, Jacques"

Notes

Links

Excerpt characterizing Der Megredichian, Jacques

“Excuse me, Your Excellency,” he began (Pierre was well acquainted with this senator, but considered it necessary to address him here officially), “although I do not agree with Mr.... (Pierre paused. He wanted to say mon tres honorable preopinant), [my dear opponent,] - with Mr.... que je n"ai pas L"honneur de connaitre; [whom I do not have the honor to know] but I believe that the class of nobility, in addition to expressing its sympathy and admiration, is also called upon to discuss the measures by which we can help the fatherland. I believe,” he said, inspired, “that the sovereign himself would be dissatisfied if he found in us only the owners of the peasants whom we give to him, and ... the chair a canon [fodder for guns] that we make of ourselves, but I wouldn’t find any co…co… advice in us.
Many moved away from the circle, noticing the senator’s contemptuous smile and the fact that Pierre spoke freely; only Ilya Andreich was pleased with Pierre’s speech, just as he was pleased with the speech of the sailor, the senator, and in general always with the speech that he last heard.
“I believe that before discussing these issues,” Pierre continued, “we must ask the sovereign, most respectfully ask His Majesty to communicate to us, how many troops we have, what is the situation of our troops and armies, and then...” Der Megredichian Jacques -

Der Megredichian Jacques

Der Megredichian Jacques

In English: Jacques Der Megreditchian

Finam Financial Dictionary.

,

Der Megredichian Jacques

Chairman of the Board of Directors of RTS.

He graduated from two business schools: the European Business Institute (in 1984) and the French Center for Financial Analysis (in 1987).

His career began in 1985 at the Paris branch of Credit Commercial de France (CCF), where Mr. Megredichian worked first as an equity analyst, later as a securities trader, and then as head of primary dealer operations and in-house trading.

Later, Mr. Megredichyan moved to CCF Brussels, where, as Deputy General Director, he was responsible for trading operations with securities and other financial instruments.

In 1993 - 1996 Mr. Megredichyan is the main representative of CCF in Moscow and at the same time a member of the Board of Directors of the open investment fund Framlington Russian Investment Fund (Luxembourg).

In 1996, Jacques Der Megredichian, as deputy general director of the Moscow branch of Banque Societe Generale, headed the bank's stock and investment operations.

Since June 2000, Mr. Megredichyan has been working at Troika Dialog Investment Company CJSC, where he currently holds the position of Managing Director of the Securities Department.

On October 8, 2004, Jacques Der Megredichyan was first elected Chairman of the Board of Directors of the NP RTS Stock Exchange. He is also the Chairman of the Board of Directors of OJSC RTS Stock Exchange.

In English: Jacques Der Megreditchian

Finam Financial Dictionary.

September 5. website - Chief Business Officer of Troika Dialog, Jacques Der Megredichyan, is leaving the company. The legal and actual period for the transfer of cases will last several months, Troika said in a press release. Jacques Der Megredichian has more than twenty-five years of experience in the brokerage and investment banking markets in the West and in Russia. Since 2004, he has been Chairman of the Board of Directors of the RTS Stock Exchange, and since 2006 - a member of the Board of Directors of the National Association of Stock Market Participants (NAUFOR). In 2011, he joined the board of directors and heads the MICEX strategic planning committee. Chairman of the Board of Directors of Troika Dialog Ruben Vardanyan noted that “Jacques’ contribution to the development of the infrastructure of the Russian stock market is difficult to overestimate.” “This (J. Megredichyan’s departure) is a joint decision and I am sure we will continue to communicate professionally and friendly,” he said. “I am convinced that the success story will continue to develop and that Troika, together with Sberbank, will build a universal financial champion,” said Jacques Der Megredichian. Jacques Der Megredichian began his career in 1985 in Paris at Credit Commercial de France (CCF). Until 1991, he supervised market operations for fixed income instruments. From 1991 to 1993 he was Deputy General Manager at CCF in Brussels and directly supervised all market operations. From 1993 to 1996, he was the main representative of CCF in Russia, was an adviser on privatization issues in Russia, and also served as director of the Framlington Russian Investment Fund. From 1996 to 2000, Jacques Der Megredichian headed the investment banking activities of Societe Generale in Russia. Since June 2000, he joined the Troika Dialog team. Troika Dialog is a leading investment company operating in the markets of the CIS countries. The key areas of activity of the company, founded in 1991, are trading operations with securities, investment banking services, asset management, private equity and venture capital investments, personal investments and finance. In addition to Moscow, Troika Dialog is represented in 20 cities of Russia, as well as in New York, London, Nicosia, Kyiv and Almaty. Sberbank of Russia and Troika Dialog in March of this year announced the signing of an agreement of intent to merge the largest bank in Russia and the leading investment bank in the country. “This is a new stage in the development of the company - two undisputed leaders in the commercial banking and investment banking businesses are uniting and a universal national champion is being created. Such processes are not completed at one moment, and therefore any top manager participating in the merger should, in an amicable way, make a decision to devote a fairly long period of my life to this - from five years or more. this moment I would like to be able to plan my future more flexibly without letting my partners and friends down, so I decided that it would be right to leave now, and not in the middle of the road,” Jacques Der Megredichyan explained to Kommersant the reasons for his resignation. “I intend to remain on the Russian financial market, but in which part of it I have not yet decided. Until now, I have worked at Troika, and it would be incorrect to consider any other employment options. Now, first of all, I would like to think about everything, look at various possibilities. “I am ready to consider any options where my experience would be useful, this could be either my own business or the largest investment banks,” he added.

Interview. The main partner of Troika Dialog, Jacques Der Megredichyan, told F. about the true springs of the global crisis and explained why derivatives will not destroy the financial world after all.

Jacques, has the recent crisis on world markets hit Troika hard?

– In general, it didn’t hit us, except perhaps due to the rise in financing costs and low market activity in the first half of September, which historically was a very active period. In the traditional sense, the financial sector is a bridge between corporations and investors. And the Troykin model is such that we never held very large positions of our own. Despite the fact that the capitalization of the Russian market has grown significantly over last years, the main income was received as an intermediary, and not as an investor. Although it is a widespread practice both abroad and in Russia that a significant share of the profits of investment banks comes from operations not related to client business. I believe that intermediaries can have their own portfolio, but their weight in the income structure must be reasonably limited. If it is too high, then unpleasant surprises occur, like some international structures in August and September.

By the way, what do you think are the true causes of the crisis?

– Firstly, this is the overly active use of leverage, both by intermediaries and investors, which is why the market as a whole has become more risky. Second, investment and commercial banks received too much of their income from their own operations. It is impossible to win constantly here, and corrections lead to losses. Thirdly, the market has developed an overly optimistic understanding of risks by investment banks, investors, and rating agencies. Obviously, some categories of transactions, such as structured products and derivatives, are difficult to evaluate. But we can at least warn investors about this.

It seems to me that many have not yet fully realized what the consequences will be. Due to the crisis, global banks will be forced to behave more cautiously and limit certain types of transactions, primarily with their own funds. And this determines the extent to which they will be able to generate income at the same level.

Jacques, do you agree with the statement that derivatives will ruin the world?

– There is a fairly common point of view (with which I do not agree) that this class of instruments is very risky and too complex. But it gives market participants many additional opportunities that can, but are not at all necessary, be used. In addition, it is not difficult to do a lot of stupid things even with the help of long-familiar instruments - stocks or bonds. For example, derivatives are commonly credited with bringing down the world's largest hedge fund, LTCM, in 1998. But this fund used almost 1 in 50 leverage in bond transactions. What does derivatives have to do with it?

So, after all, futures mean big shoulders...

– The leverage effect can be created without them - through repo transactions, repeatedly remortgaging the same package. By the way, this is how LTCM operated. Derivatives are booming because they are in demand by investors. If you don't know how to use these tools, don't bother. If you know, then act more carefully. Any additional features carry both pros and cons. But be that as it may, the weight of transactions with derivatives compared to cash securities will increase. This trend is typical for both the West and Russia.

Do you think structured products also have a great future?

– The development of the financial industry will be accompanied by the emergence of new classes of instruments. Structured products are one of them. The first structured products were related to the resale of credit risk. That is, an investment bank repackages the loan portfolio of a certain commercial bank, ties it with a bow and sells it to investors in the form of a new instrument. I think there will be more caution in this segment in the next six months to a year. It is obvious that global market participants have gone too far with such operations.

But such structured products as notes with a guarantee of capital return will be actively developed. They allow investors to limit possible losses or get a 100% return on their initial investment even in unfavorable circumstances. And if favorable, investments will bring high income. We have already developed such custom tools for a number of investors and are going to expand this line with products for all categories of clients, including retail.

Another type of structured product that should develop rapidly in the coming years is transactions for raising funds by corporations, combining features of debt and equity financing. In this regard, I would like to note that the market for convertible bonds in Russia should also grow significantly.

In general, how do you assess the attractiveness of the Russian stock market?

– It is becoming more diversified. If recently we observed its annual growth of up to 80%, then our estimate for the next three years is from 15 to 30% annually. The market will be more dependent on what happens on international markets (since there is no longer significant undervaluation). In this situation, all clients - both issuers and investors, both in the primary and secondary markets - will need better service.

Jacques, “on duty” question: Is Troika Dialog considering the possibility of selling its shares?

– A few months ago we were thinking about how the market would develop and what role we could play in it. As a result, we decided to remain an independent company. This does not exclude an IPO or private placement of a small stake, however, top managers will retain control over Troika.

What changes in your approach to doing business as the interest of large international banks in Russia grows?

- Indeed, very important factor is that international investment banks can no longer ignore it. For a long time they looked at this segment from afar, choosing individual niches that seemed interesting. Now everyone understands that they must have a global presence here. With their arrival, the investment banking market is becoming more competitive. And we try to build an optimal strategy based on our own advantages. The main attitude is to work with the widest client base: from multibillion-dollar Western funds to a regional investor concluding deals via the Internet. In general, Troika Dialog is now closer to the model of Merrill Lynch or Nomura than, say, Goldman Sachs, which is focused only on large participants. The same approach is used in servicing securities issuers - we work with both the largest and medium-sized corporations. Separately, I would highlight companies with sales from $300 million to 3 billion. In this segment, we can afford not just to participate in one-time transactions, but to accompany the company in its growth, that is, to fully play the role of an investment bank.

Why did Troika's personnel policy change?

– Historically, Troika Dialog was a company that mainly grew its own specialists within itself. But globalization leads to the fact that competition between investment banks becomes international. Therefore, along with the previous approach, we decided to strengthen the team with professionals who have achieved success in large Western structures. Behind recent months invited a number of famous and successful top managers. Another significant aspect in which changes are taking place is technology. We have invested a lot of money in a new dealing center and IT platform. When you have a significant increase in your operations and product line, you can't just add a computer or one person and continue to operate as before.

From what sources does Troika finance these costs?

– Along with the use own resources we raised a syndicated loan in July in the amount of $180 million for a very good conditions(at the rate LIBOR+1.1% – “F.”). The organizing banks even took over the underwriting, that is, they guaranteed the placement in full. These funds went to current activities. For some time we deliberately did not enter the market, since short money in Russia was very cheap, and long money was more expensive. When you can get financing at 3% per annum, why take out a loan at 7–8%? But taking into account the changing market conditions and the rapid growth of the Troika itself, the moment came when it was more correct to cover part of the funding needs using longer-term resources.

Main partner and head of investment banking and global markets of the Troika Dialog group of companies Jacques Der Megredichian began his career in 1985 in the Paris branch of the Credit Commercial de France (CCF) bank, later moving to the CCF branch in Brussels, where, as deputy general director, he was responsible for trading operations with securities. Since 1993, he has been the director of the Framlington Russian Investment Fund and at the same time the main representative of CCF in Moscow. Since 1996, he worked as Deputy General Director of the Moscow branch of Banque Societe Generale, dealing with stock and investment banking operations. At Troika Dialog since 2000. Since 2004, he has been Chairman of the Board of Directors of the RTS Stock Exchange, and since 2006 has been a member of the Board of Directors of the National Association of Stock Market Participants (NAUFOR). He graduated from two business schools in Paris: European Business Institute (1984) and French Center for Financial Analysis (1987).