The past year has been quite active both in motherland, Latvia, and in Russia, which is a big and dynamically growing market. PRIBALT’s main office from year 2010 is situated in the world’s megalopolis Moscow, where PRIBALT’s activity in private equity area is accomplished. The main accent was on the activity in Russia; however, the business in Latvia has developed unexpectedly well...

...It is a shame that in 2011 the business activity of Latvijas Krajbanka (Latvian Saving bank) was stopped. PRIBALT has been successfully working with the bank for 2 years on enterprises’ restructuration and crisis management questions. To those enterprises, which could not service their credits, PRIBALT helped with management support, helped to make and actualize both restructuration and development plans, made controlling functions on the bank’s behalf. This made it possible to turn the bad credits into stable clients. In this way, one of the biggest Latvian woodworking enterprises regained its solvency and once again started to fully serve the debt. Also, a domineering regional construction company escaped bankruptcy and at the moment continues its’ activity. These were the wonderful PRIBALT fruits of labor, which made happy us, the bankers and the target company’s owners, management and employees.

The main activity in Latvia was the crisis management and post-crisis support on behalf of the bank. The second essential and comparably fresh PRIBALT course, which actively took its place in 2011, has been the Latvian manufacturers’ management support in Russian exports’ questions. There has been help given to the biggest Latvian berries grower, and the biggest candied and syrup manufacturer. With one company the partnership has continued from 2010, with the other – started only in 2011. The partnerships with the companies are long-term oriented and will be continued in 2012. This trend has naturally developed, due to being based on the three cornerstones: 1) PRIBALT permanent situation in Moscow, 2) PRIBALT “closeness” to the Russian trader group and 3) PRIBALT’s specialists’ high qualification.

In its turn, in Russia in the middle of 2011, after a brief work during a year, PRIBALT has closed a stress asset investment project in pharmaceutical field. There has been performed a blowout transaction, selling capital shares to the management.

In addition, alongside with a respected and one of the biggest America’s financial groups Carlton Group, there has been started a project on real estate investment bankers’ activity.

It was really interesting to take part in the scandalous Moscow’s department store “Moscow” restructuration transaction, the main creditor of which was Parex Bank (Latvia). The department store’s managing company has been provided with support in creditors’ relationship management, funding attraction questions and questions on emission of bonds.

Judging by the activities done and results received, PRIBALT management and owners are satisfied with the results of 2011 and are looking forward to year 2012! We await that Latvian-Russian export-import activity will bring good results. We think of continuing to perform crisis and post-crisis management services. Essential should be the results of the investment activity.