About ARTA
Leading Ukrainian investment company since 2002
ARTA is a leading Ukrainian investment company, which has been actively operating in the local financial market since 2002.
ARTA's history began with the establishment of ARTA Investment Partners in 2002. Initially the Company was positioning itself as an investment boutique aimed at providing its clients with highly professional advisory expertise in debt advisory and corporate finance.
After establishing ARTA Securities LLC in 2003, the Company entered the Ukrainian securities market as one of the first and most active key players. Also, in 2003 ARTA closed its first significant transaction- the debut UAH 30 M bond issue for our long-standing client SJSC Chornomornaftogaz.
The highlight of 2005 was the creation of ARTA Asset Management LLC which launched a business relatively new for the Company – asset management for both corporate and individual clients. In January 2005, a Corporate Non-governmental Pension Fund "Chornomornaftogaz" was established. Due to ARTA's efficient management of the Fund's assets, its performance was one of the most profitable in the local market.
As a result of the Company's ever increasing range of activities, the next logical step was creation of the ARTA Group of Companies which is currently comprised of three legal entities: ARTA Investment Partners LLC, ARTA Securities LLC and ARTA Asset Management LLC. These companies lead three core business areas: corporate finance, brokerage and asset management. Since its inception, ARTA has attracted approx USD 1.5 billion to the local market.
Currently, ARTA is entering into a consequential stage of its development – it's been evolving into an investment bank which delivers unique expertise gained in world financial markets and adapted to local market needs.
We believe that combining the best international practices with a deep understanding of the local economic, political and cultural environment is a minimum prerequisite to best serve the needs and requirements of our clients. Market and sector knowledge, a professional approach, efficiency and special attention to customers' needs are the key facets of our strategic positioning.
Clients and Partners
With considerable experience in Ukrainian and global financial markets, ARTA has been an advisor both to major Ukrainian corporates, as well as municipal and government authorities, as well as international investors looking for business opportunities in Ukraine. We also provide advisory services to private clients in aspects related to wealth management.
ARTA has been actively cooperating with several leading government-owned companies, as well as governments. We have established long-lasting and extensive contacts and gained an unmatched experience of cooperation, both on buy and sell sides, with international investment banks, institutional and industrial investors and international financial organizations.
Sector Expertise
Although ARTA's financial engineering skills which may be applied to most sectors, it currently focuses on the industries where we have strong research and analytic backgrounds and established relationships, such as oil & gas, energy, financial sector, media, transport, machinery, retail, real estate, food & agriculture.
Our strategy is based on providing professional solutions tailored for both public and private customers. Avoiding mass products, we have determined a strong CRM focus aimed at creating long-term relationships with our clients and partners, whom we value above all.Our principle objective is to design comprehensive, value added solutions for our clients which will serve their primary targets the most and will be essential to improving their bottom line results. ARTA's commitment to its business principles contributes significantly to the Company's trustworthy reputation among our clients and partners both domestically and globally.
01 Focus on Client's Individual Needs
Pivotal to financial business is the ability to build long-term relationships with clients based on trust and mutual understanding. Our client-focused solutions which imply a combination of professionalism, experience and individual approach to every client are designed to achieve maximum benefits for our clients. We strongly believe that no profit can substitute a good reputation and long-term relationships established between us and our clients in the course of our cooperation.
02 Professional Approach
We are striving to provide our clients with unique, efficient and complex financial products to meet their high expectations and to satisfy their constantly changing needs. To duly meet our clients's requirements, we adhere to a result-oriented working schedule rather than the formal nine-to-six approach. We keep our relationships with clients strictly confidential and maintain a high level of ethical standards in both cooperation and competition.
03 Teamwork
One of the essential factors contributing to our successful development is the team of professionals working in ARTA. We are proud of the special feeling of unity and the esprit de corps within our staff. Our efficiency is based not only on complimentary visions of business strategy, but also on the system of values that consolidates us.
04 Independence
Our professional reputation and integrity are safeguarded by our Company's full independence from any financial/industrial group or political party. We adhere only to our own principles and values in delivering value-added advisory services to our clients.
05 Integrity and Honesty
ARTA's distinguished name and good reputation are an indispensable part of the Company image we maintain. Commitment to high standards of professional and interpersonal ethics is a fundamental principle both within the Firm and in our attitude towards our clients, partners and competitors.
Find answers to the most frequently asked questions about ARTA and our services.
Due Diligence is a term that denotes the process of collecting comprehensive information on a company's financial, legal, labor, tax, environment and market/commercial state. The findings are handed over to a prospective investor or acquirer in order to assist them to decide whether they benefit from the prospective deal.
Based on internal information, regulations, and details available from competitors and/or partners, Due Diligence is carried out to: verify whether internal information is true; find evidence for data and targets of a business plan; assess corporate strategies; verify document compliance with applicable laws; ensure tax reports are duly submitted; evaluate competitive advantages; and ensure corporate management is competent enough to achieve targets.
Timing of the merger and acquisition process can vary widely from several weeks to many months depending on the M&A market state, product category, complexity of products and technology, the number and type of prospective buyers. It ordinarily takes from three to eight months until an LOI is signed, and another two to four months before closing.
The main expenses incurred by the bond issuer include: Issue registration fee — 0.1% of the issue nominal value; ISIN fee — UAH 1,888.00 irrespective of the issue nominal value; Announcement in official printed media — at applicable rate; Auditor's services — at the rate of the audit firm; Underwriter's fee — up to 1%; PFTS listing fee: one-time UAH 2,000 and annual UAH 1,000.
Our company acts as a lead-manager and an underwriter in transactions of corporate and/or municipal bond issues with a volume no less than UAH 10 mln.
Preparation Phase: upon signing a contract we send a comprehensive checklist for information.
Valuation Phase: we begin our preliminary analysis including review of the industry background.
Valuation Results: our reports provide a transparent, clearly documented rationale for the valuation results.
From the moment of approving issue-related documentation to actual bond placing and money transfer, it normally takes from 7 to 8 weeks required for registering an offering memorandum and taking some marketing steps.
High profitability is the main benefit of investment funds. Although investment companies do not guarantee high-profit investments, the interest rate is normally higher than that of bank deposits.
Sound liquidity is the second benefit. Certificates of open-end investment funds can be bought back on a daily basis with no negative yield.
Prompt profit reinvestment is the third benefit. An investment fund reinvests income on a daily basis.
Corporate pension funds (CPFs) are the most efficient staff incentive programs allowing an employer to demonstrate commitment to social guarantees. Pension payments do not bring an additional tax burden: payments within 15% of an employee's salary are ascribed to gross expenses which reduce the tax base.
Closed-end investment funds normally require higher contributions. While open-end and interval investment funds offer individuals the opportunity to invest from UAH 1,000, the average minimum contribution to the closed-end fund exceeds UAH 10,000.
To make the right decision regarding the volume and direction of an investment, it is necessary to learn a fund's Offering Memorandum. An individual investor should: sign an application for purchasing shares; submit a passport and ID certificate; sign a share purchase agreement; pay the shares' value within an indicated period.
A corporate investor should additionally submit: the Company Charter, State Registration Certificate, UAH account details, Tax Payer Certificate.