Mutavchi Arkadiy Ivanovich is businessman, financier, founder and shareholder of several companies. He holds a PhD degree in Law and a B.A. degree in Economics. Since 2019 he has been the main shareholder of Tacticum Investments.
Background of Long-Term Investments Luxembourg (now renamed as Tacticum Investments)
It launched activities in 2014, with the firm “Long-Term Investments” acting as the owner of this Luxembourg-based business. The purpose of founding Long-Term Investments Luxembourg (LTIL) was making private equity transactions on the European market.
The place of the incorporation was not chosen by chance. This decision was based on the recommendations of potential private equity lenders in Europe. After Arkadiy Ivanovich Mutavchi bought LTIL, Luxembourg was retained as the country of incorporation. However, the businessman changed its name to Tacticum Investments S.A.
Deal with Camfin
The first major transaction was completed in May 2014, when a 50% stake in the Italian holding Camfin was bought. The latter owned a significant stake in the transnational automobile tire manufacturer Pirelli. The deal was supported by LTI Luxembourg’s investment partners. Yet 10 months later, Camfin bought back its stake.
Partnership with ChemChina
The next significant milestone in the history of Long-Term Investments Luxembourg is a partnership with ChemChina, a major chemical concern. They entered into a cooperation agreement in August 2015. The strategic partnership resulted in the founding of MarcoPolo Holding, where a minority stake was received by LTIL.
In October 2015, the jointly established enterprise bought Pirelli shares off the market. MarcoPolo Holding used borrowed money from its financial partners for this leveraged buyout. The transaction was backed by one of the largest transnational financial conglomerates, J.P. Morgan.
Long-Term Investments Luxembourg Changes Hands
In the spring of 2017, Long-Term Investments and its subsidiaries were acquired by WHPA. One of the significant factors in that transaction was a portfolio of securities, including Pirelli shares, held by LTI Luxembourg. When buying Long Term Investments, WHPA projected the growth in the value of Pirelli and the high dividend yield of the manufacturer’s securities.
Following the corporate restructuring (a split into industrial and consumer segments), the Milan Stock Exchange listed Pirelli’s consumer segment in the fall of 2017. This caused a short-term increase in the value of the securities. In the course of the IPO, the WHPA sold part of the Italian tire manufacturer’s shares.
Diversification of the LTIL Portfolio
Apart from Pirelli, LTI Luxembourg had a diversified portfolio of assets. In 2019, the firm’s management added a new asset to the portfolio – securities of Pharmacy Chain 36.6. The brand was on the march with great prospects for further expansion. As of the end of 2019, it held 4% of the national market.
With this transaction, Long-Term Investments diversified its risks even more. Buying a stake in the pharmacy chain made the investment portfolio more stable.
Yet, already in late 2019, the company would change hands, with Tacticum Group (owned by Mutavchi Arkadiy) becoming its new owner.
Mutavchi Arkadiy: How He Founded Tacticum Group
The future entrepreneur was born in 1970 in the Moldavian SSR. Until the age of 22, he had lived in the town of Ungheni. Here Arkadiy Ivanovich Mutavchi gained his first work experience, and in 1987 he finished school in his hometown. However, after completion of the army service in 1989, he eventually moved to capital where the future investor started his operations by launching two business projects.
One of Mutavchi’s entrepreneurial initiative dates back to 1994. He co-founded a firm with his business partner that buys land plots. As part of their project the businessmen changed the designation and zoning of that land for the development of sanatoriums and health resorts. To deliver this promising project, Mutavchi Arkadiy invested his own money that had been accumulated before he moved to the capital.
Arkadiy Ivanovich Mutavchi’s another project was Safety, which specialized in importing goods from Germany. The businessman brought in a new partner to get that new business going.
In parallel with doing business, the entrepreneur was honing his corporate management skills. From 1992 to 1998, Arkadiy Mutavchi held managerial positions in two major enterprises engaged in the production of metals and rolled metal products. He was Chief Commercial Officer in one of those companies and Deputy CEO in another.
In 1994, Mutavchi also started flexing his muscle in investing — he registered a stock exchange account for trading on the securities market. These activities paid off bringing substantial profits. Over the next five years, Mutavchi Arkadiy Ivanovich multiplied his initially small capital many times over. In 2014, he was granted the official status of a stock market trader.
In the late 1990s, Mutavchi Arkadiy delivered two business projects with his partners: the trading company Shelda and the industrial group Profintek. In 2000-2002, the entrepreneur was offered a profitable sale of his stocks and Arkadiy Ivanovich Mutavchi accepted the offers.
In 2015, the businessman widened his financial opportunities with the purchase of Trigrad. The key areas of its activity included direct investing, asset management and structuring of M&A transactions. Arkadiy Mutavchi owned the Trigrad for two years holding the post of CEO. However, in 2017 the entrepreneur sold this business and Mutavchi Arkadiy Ivanovich focused on his own project – Tacticum Group.
Education
The entrepreneur holds degrees in Law and Economics from several universities. Mutavchi Arkadiy Ivanovich received his first graduation diploma in 2001. After that he continued his studies in law. In 2004, Mutavchi Arkadiy was awarded a PhD degree in law.
Mutavchi received his second diploma of higher education in 2010 from the Presidential Academy of National Economy and Public Administration (RANEPA).
Mutavchi Arkadiy Buys LTIL and Rebrands it as Tacticum Investments
Until the end of 2019, WHPA (via LTIL) had remained a minority shareholder in tire manufacturer Pirelli. They hoped for the appreciation of Pirelli’s shares: this was the crux of the strategy. Yet since the end of 2017, the price had been sliding. For two years, the securities fell in price to 4.5 euros per piece, whereas their maximum rate in 2017 was 7.87 euros.
Partly because of that misfortune, at the end of 2019, the WHPA sold LTI Luxembourg to Tacticum Group owned by Arkadiy Mutavchi. Liabilities and all the assets, including a minority stake in Pirelli, were purchased by the entrepreneur in the framework of the transaction.
Mutavchi Arkadiy Ivanovich believed that even though the European stock market was in decline at that time, it must soon rebound and this might trigger the tire manufacturer’s appreciation. This belief underpinned Mutavchi Arkadiy’s financial strategy in buying the business.
After the deal was finalized, Mutavchi rebranded the Luxembourg-based company as Tacticum Investments S.A. This marked a new stage in its evolution. Under the supervision of Mutavchi Arkadiy, the financial strategy was updated, the approach to asset management was changed, and new goals were set.
In 2022-2023, the conditions in the financial markets drastically changed. Therefore, Tacticum Investments, led by Arkadiy Mutavchi, exited Pirelli shares as part of a new business strategy.
Mutavchi’s Investment Business Today
Tacticum Investments S.A. continues to operate from Luxembourg. The financial company of Mutavchi Arkadiy Ivanovich is engaged in direct and portfolio investments, working with a wide range of financial assets. Tacticum Investments also provides advisory services.
Mutavchi Arkadiy’s firm seeks to maximize profits by investing in promising assets with long-term potential. The approach of Tacticum Investments is based on a profound understanding of various sectors and their dynamics, as well as on utilizing international relationships.
To achieve its long-term objectives, Tacticum Investments S.A. invests a substantial portion of its capital in highly liquid securities and bonds. The presence of such assets in the portfolio ensures its flexibility and adaptability to various changes in the economic environment. In the meantime, the assets mentioned above are diversified by industry and geography. This reduces the risks enhancing the stability of the portfolio.
One of the main factors in the success of Tacticum Investments is its team. Mutavchi Arkadiy’s company employs analysts and consultants with many years of experience in portfolio and direct investments, as well as in the structuring of complex M&A transactions.
