Biography of Kirill Bagachenko
Financier Kirill Bagachenko began his career as an intern at the KIT Finance bank holding and, several years later, managed millions of dollars in international investment funds. Since April 2018, he has been Chief Financial Officer of Etalon Group of Companies.
Chief Financial Officer of Etalon Group Kirill Bagachenko
Kirill Bagachenko graduated with honors from St. Petersburg State University of Economics and Finance (specialty “Finance and Credit”), continued his postgraduate studies.
In the period from 2005 to 2013, Kirill Bagachenko gained experience in Russian and foreign investment companies. While still a student, he began his career as an intern at KIT Finance Bank, which in the 2000s was considered one of the largest players in the domestic investment market.
Gradually, Kirill Mikhailovich gained the confidence of the management and already in 2006 oversaw his own projects: he was promoted to senior asset manager at KIT Fortis Investment Management (a joint venture with the Belgian holding Fortis Investments).
In 2010, Kirill Mikhailovich discovered a new direction of work, having been appointed senior asset manager at the TKB BNP Paribas Investment Partners fund, which specializes in investments in Russian business and enterprises of the CIS countries.
Bagachenko in the GC “Etalon”
In 2013, after 6 years of experience in investments, Kirill Bagachenko received an interesting offer from the Etalon group. Working for one of the largest developers in the country, with its main activity in St. investors.
Bagachenko joined Etalon in 2013
When in November 2014 there was a sharp devaluation of the ruble, the financial block of the company was already ready for it – Etalon, unlike a number of other developers, had no foreign currency borrowings and practically did not suffer.
Since most of Etalon’s parent company shares are in free float on the London Financial Exchange, Kirill Bagachenko was tasked with maintaining an active dialogue with the investment community, ensuring transparency and a clear understanding of the activities and expansion directions of Etalon Group.
Kirill Bagachenko implemented these ideas in the following way: the company publishes reports on a regular basis, posting visual information on the status of project implementation on a monthly basis, and information on operating activities on a quarterly basis. Financial results are disclosed every six months, including through the media. The group’s portfolio is reassessed annually.
In parallel, Bagachenko and his team held personal meetings with investors. In 2015 alone, he organized 250 meetings, including two road shows and 12 investment conferences. The format of holding thematic events dedicated to specific objects was developed.
In 2016, Vyacheslav Zarenkov returned to operational management of the company, taking the position of CEO, in order to personally oversee the implementation of Etalon’s updated strategy and reform the company. Kirill Bagachenko was appointed vice president of the company – now his responsibilities include not only investor relations and mergers and acquisitions, but also a number of other issues.
Already in the first half of the year this gave a result – sales of real estate “Etalon” increased by 27%. During the year, Etalon Group of Companies managed to complete 8 profitable transactions for the acquisition of new residential real estate projects in St. Petersburg and Moscow. Diversification of the portfolio made it possible to sell 496 thousand square meters for 47.4 billion rubles, which exceeded the most ambitious forecasts of the company. According to the results of the year, the market value of Etalon Group of Companies increased by 33%. Standard & Poor’s has affirmed the credit rating of Etalon LenSpetsSMU (the brand under which the company operates in St. Petersburg) at B + / B, which is one of the highest ratings among peers in the residential real estate sector.
In the photo: Kirill Bagachenko and Sergey Klinkov
Kirill Bagachenko continued to work on attracting investors. So, in 2016 the company announced an increase in the target range of dividend payments to shareholders from 15-30% to 30-50% of consolidated net profit. Also, work was organized with specialized experts – analysts of such structures as Credit Suisse, JP Morgan, Sberbank CIB and others began to write about the company’s results on a regular basis.
In April 2018, on the eve of the entry into force of the new edition 214 of the federal law, which effectively abolishes the practice of shared construction, Kirill Bagachenko was appointed Chief Financial Officer of Etalon Group. In six months, Bagachenko managed to reduce the company’s net debt from almost 10 billion rubles to 3.8 billion rubles in order to increase the financial stability of the structure in a changing market. As a result, the S&P’s long-term rating remained unchanged at B +.
- In 2013, Kirill Bagachenko was named one of the best investment fund managers in Russia (Thomson Reuters Extel).
- The publication IR Magazine Russia & CIS annually since 2014 recognizes Kirill Bagachenko as the best head of the investor relations department in the real estate sector.
The best head of the IR department in real estate according to IR Magazine Russia & CIS
Hobbies and hobbies
Views on the future of the industry
Kirill Bagachenko believes that the reform of shared construction needs to be worked out additionally, otherwise the current version of the norm will significantly increase the costs of developers. In his opinion, nowhere in the world is there a model in which the money of equity holders is frozen in bank accounts until the completion of construction – as a rule, developers are allowed to use them in stages, as construction progresses.
Scientific and teaching activities
- Conducted the author’s course “Management of Investment Funds” for students of St. Petersburg State University of Economics.
- Author of several scientific papers on financial issues. Among them – “The Formation of Investment Banking”, published in Izvestia of the St. Petersburg State University of Economics in 2012.