Arkadiy Mutavchi: background of Tacticum Investments shareholder
Photo: Unsplash.com

Arkadiy Mutavchi: background of Tacticum Investments shareholder

Early years of Mutavchi Arkadiy

Mutavchi Arkadiy (January 2, 1970) was born in a family of lawyers in Moldova. It was here in this closed border town, on the banks of Prut River, that Arkadiy Mutavchi spent his childhood and youth. Mutavchi got his first job while still at school when he was 14 – working as a laborer at a fish processing plant. In 1987, Arkadiy Ivanovich Mutavchi graduated from a local school. In almost thirty years he would become the main figure at Tacticum Investments — details of his career path and financial background are below.

Education

Mutavchi Arkadiy has legal and economic educational background.

In 2001, Mutavchi Arkadiy Ivanovich graduated from the university with a degree in law. Three years later, he upgraded his financial knowledge, taking industry classes at the economics university. Later on, Mutavchi Arkadiy defended his PhD dissertation at RANEPA university. Mutavchi was consequently conferred with a doctorate degree in law. The title of his dissertation work was “Federalism: Political and Legal Analysis”. As the title suggests, the paper was devoted to the analysis of the history of federalism, along with the problems and prospects of its development. Subsequently, Mutavchi Arkadiy Ivanovich reinforced his economic education, defending the thesis in 2010 in the RANEPA as well, thus becoming a holder of two academic degrees.

Arkadiy Mutavchi: background of Tacticum Investments shareholder
Photo Courtesy: Tacticum Investments

Career and business

Arkadiy Ivanovich Mutavchi started accumulating his capital in 1990. As an employee at Sijata, an international joint-venture, Mutavchi Arkadiy gained deep understanding of import and export activities. This experience came in handy for him later on. The company traded between the Soviet Union and Eastern European countries; it specialized in selling products from the Soviet engineering and machine-building sector that were in demand because of a good combination of price and quality.

The year 1992 came with dramatic changes across the landscape of the Soviet Union, which had broken down. The situation stimulated the popularization of entrepreneurship among the population. Mutavchi Arkadiy Ivanovich was not left out from the events that unfolded. Mutavchi began to build first a managerial and then a business career – over the following years, Arkadiy Mutavchi worked in multiple organizations of diverse scale and profile.

One of Mutavchi Arkadiy’s first projects was a firm that was into importing personal protective equipment from Europe.

The peasant farm was Mutavchi’s next career step. This project was into buying agricultural land pieces, which were later converted into those suited for recreational facilities. This business model was just emerging at that time and Arkadiy was among those who was able to execute it profitably.

Next, as the Director at Stalservice, Mutavchi Arkadiy Ivanovich was driving revenue increase initiatives: he devised commercial strategy, ran its implementation thru personnel recruitment, business process optimization and negotiations with counterparties. The company was into production of machinery and supplied it to CIS countries.

Competition was intensifying and entrepreneurs were trying to find and lure talented managers to their companies. Arkadiy Mutavchi was invited to work at a well-known company in the metal-processing market that was part of the Brock-Invest Group. As Deputy Director, Mutavchi Arkadiy dealt with issues of COGS reduction, including selection of suppliers, negotiations and supervision of COGS-reduction operational initiatives.

Investments and business development

Mutavchi Arkadiy initially set up a brokerage account in 1994 and began to master securities trading. This period was known for rapid growth in private companies, which opened up vast investment opportunities. Over a five-year period, Mutavchi’s investment successes saw his capital build up substantially; he could now operate large sums of money, trade abroad, and apply high-risk trading strategies. Arkadiy’s portfolio was characterized by a high level of diversification  –  for example, Mutavchi Arkadiy Ivanovich supplemented it with investment coins. The finance experience Mutavchi gained at that time would later be successfully utilized at Tacticum Investments.

Along with investing, Mutavchi continued to grow his business. The boom in the real estate sector opened up doors to lucrative business with developers suppling steel products. Contracts were signed through Shelda, a company co-founded by Mutavchi Arkadiy Ivanovich in 1998. Shelda was a successful company with a focus on both metal and stock trading. Mutavchi worked there as managing director until 2000, when he got a favorable offer from his partners and profitably exited the business. Around the same time, Mutavchi Arkadiy had opened a new company called Profintek, which processed and sold petroleum raw materials. He stayed with Profintek for about two years, after which the entrepreneur successfully sold his share.

A new stage in Arkadiy Ivanovich Mutavchi’s path was the role of M&A Vice President at CJSC Kungur. The company produced and sold equipment for drilling operations and was actively growing. The company was seriously planning to undertake its initial public offering (IPO), and Mutavchi had the option on the company’s shares that could have been exercised upon IPO. However, the global financial crisis in 2008 left Kungur with no choice than to adjust plans.

In 2014, Arkadiy Ivanovich Mutavchi became a qualified investor, which opened up for him a wider spectrum of financial instruments in trading. A “qualified investor” status, as enshrined in law, is an indication of a person’s high competence and professional approach. The future shareholder of Tacticum Investments would keep on trading securities, thereby increasing his capital significantly.

From 2015 to 2017, Mutavchi worked as a director at an asset-management company, which he had acquired from the previous owner. The company invested in information technology and other niches that are not highly dependent on economic volatility.

Tacticum Investments

In 2019, Arkadiy Mutavchi decided to put his accumulated experience into practice in his asset management activities by founding Tacticum Group.

Tacticum acquired holding company Long Term Investments Luxembourg (LTIL) in December 2019, renaming it to Tacticum Investments S.A.

Purchase of Long Term Investments Luxembourg was a risky endeavor because of the company’s debt obligations. However, LTIL underwent thorough due diligence and in-depth risk analysis, after which it was acquired.

One of the components of the Long Term Investments’s portfolio at that time was the shares of the world-famous tyre-producer Pirelli. The manufacturing giant had gone through diverse periods in its history, however during that period the company’s securities have been steadily decreasing in price since 2017, and Tacticum with Mutavchi Arkadiy, in particular, counted on their “rebound”. However, two factors came into play. Firstly, the outbreak of the pandemic, which generated serious damage to the global economy leading, on the one hand, to a decrease in demand, and, on the other hand, to a surge in COGS that among other factors was triggered by supply chain disruption. Secondly, Pirelli’s unfavorable dividend policy during that period of time. Thus, this asset of Long Term Investments Luxembourg did not justify hopes to the full and Tacticum Investments ceased to be a minority stockholder of the manufacturing giant.

Regardless of the negative trends that prevailed in the world after LTIL acquisition, Mutavchi Arkadiy was able to stabilize the company’s financial situation and placed Tacticum Investments on a sustainable expansion path.

The main objective of Tacticum Investments S.A. today is to preserve and grow its capital under Arkadiy Mutavchi’s leadership. For this purpose, there is the necessary infrastructure and access to many investment instruments and financing sources — projects at Tacticum Investments are implemented using both equity and borrowed capital. At present, Tacticum Investments S.A. is employing various strategies within private equity and securities trading (including options, futures and other derivatives).

To achieve the goals at Tacticum Investments, Mutavchi Arkadiy Ivanovich has brought together professionals with many years of financial experience gained in leading Western banks and investment consulting firms.

Personal life

Arkadiy Mutavchi is married and has three children. Besides Tacticum Investments and his family, Mutavchi devotes time to literature — Arkady’s personal library contains many unique and valuable books. Mutavchi Arkadiy’s interests also include science — he is the author of various scientific papers that are regularly published in professional journals.

 

Published By: Aize Perez

(Ambassador)

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