Bloomberg Billionaires Index

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#199 Alexey Kuzmichev $7.53B

Random fact: Co-invested $770 million in U.K. luxury student housing in 2015.

Overview

Kuzmichev is a partner in Alfa Group, an investment company he controls with billionaire Mikhail Fridman. He owns 16 percent of Alfa Bank, Russia's second-largest closely held bank. Through Luxembourg-based LetterOne he owns a stakes in European oil and gas producer DEA and international mobile-phone operator Veon.

As of July 23, 2017:
Last change +$29.3M (+0.4%)
YTD change +$687M (+10.0%)
Industry Diversified
Biggest asset Cash
Citizenship Russian Federation
Age 54
Wealth Self-made
View net worth over:   Max 1 year 1 quarter 1 month 1 week

Relative Value

Alexey Kuzmichev's net worth of $7.53B can buy ...

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troy ounces of gold
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barrels of crude oil

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of the GDP of the United States
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of the total wealth of the 500 richest people in the world
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of the top 100 U.S. college endowments
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of the top 200 U.S. executives’ total awarded compensation
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of U.S. existing home sales
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times the median U.S. household income

Latest News

Net Worth Summary

Cash
Private asset
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Misc. liabilities
Confidence rating:

The majority of Kuzmichev's fortune is derived from his stake in Alfa Group, which has interests in banking and retail through a web of companies based in Gibraltar, the British Virgin Islands and Liechtenstein. He created and controls the holding company with two former college classmates, Mikhail Fridman and German Khan. The three partners own the businesses controlled by Alfa Group through Gibraltar-based CTF Holdings.

He sold his stake in TNK-BP International, Russia's third-largest oil producer at that time, to state-run oil company Rosneft for $2.6 billion in March 2013, after collecting almost $1.8 billion in dividends from 2004 to 2012. Kuzmichev owns 16.3 percent of Alfa Bank, Russia's second-largest closely held bank by assets, according to Interfax-Center of Economic Analysis as of June 30, 2016.

In March 2015, through Luxembourg-based holding company, LetterOne, he and his partners completed the 5.1 billion-euro ($5.8 billion) acquisition of German RWE's Dea unit, which produces oil and gas in Norway, Germany and Egypt. Kuzmichev owns a 19 percent in the asset, which is valued based on the acquisition price.

Kuzmichev also holds shares in three publicly traded companies, including 11.4 percent of X5, a Russian food retailer, and a 2.5 percent stake in Turkcell, a mobile phone company, and 11 percent of Veon, an international mobile phone operator. He holds stakes in Veon and Turkcell through Luxembourg-based LetterOne Holdings.

He also owns stakes in the investment fund A-1, asset management firm Alfa Capital, FreedomPop, a wireless internet mobile service provider, and water supply company Rosvodokanal.

Biography

Birthdate: 10/15/1962
Family: Married, 1 child
Education: Graduated, Moscow Institute of Steel & Alloys

Alexey Kuzmichev was born in 1962 in Kirov, a Russian city located west of the Ural Mountains. After serving in the border troops in Siberia's Trans-Baikal region, Kuzmichev enrolled at the Moscow Institute of Steel and Alloys in 1983, where he met German Khan and Mikhail Fridman. In the first year of his studies, he joined the Soviet Union's Communist Party. He graduated in 1988, and has since worked with Fridman and Khan. They first sold electronic goods, carpets and consumer staples -- enterprises that became the basis for Alfa Group, the holding company that today controls many of their investments.

The trio also created a commodities trading company, Crown Trade and Finance, which moved oil between Europe, the U.S., Australia, Cuba and Iraq. Kuzmichev became Crown's CEO in 1996. In 2002, an oil tanker chartered by company successor Crown Resources, was denied entry to a Spanish port, broke during a storm and sank off the coast, spewing 20,000 tons of oil into the Atlantic Ocean. Alfa subsequently sold Crown.

The billionaires landed the TNK deal, Fridman and Kuzmichev's biggest financial success, in 1997. Along with fellow businessmen Viktor Vekselberg and Leonid Blavatnik, the Alfa partners bought a 40 percent interest in the former state-owned oil company with interests in several West Siberian oil fields. Two years later, they also acquired the most productive subsidiary of competitor, Sidanco -- then owned in part by BP -- which had been declared bankrupt by a commercial court in Siberia. BP's CEO at the time, John Browne, later called the legal system "rigged."

BP had paid almost $8 billion by 2004 for half of TNK, while the other half was consolidated by Fridman and his partners under the holding company Alfa-Access-Renova (AAR). The investment formed TNK-BP, Russia's largest foreign oil investment. TNK-BP CEO Bob Dudley -- now CEO of BP -- was forced to leave Russia after a strategy dispute in 2008.

Legal complications arose in 2011. AAR sued BP over a separate Arctic development deal it tried to strike with Russian state-owned company Rosneft, citing a breach in a shareholder agreement. In 2012, BP executives announced that the company would sell its stake and Fridman stepped down from his role as CEO. The billionaires sold their half of the venture to Russia's state-owned oil company, Rosneft, for $27.7 billion in March 2013.

Milestones
  • 1962 Alexey Viktorovich Kuzmichev is born in Kirov, Russia.
  • 1988 Graduates from Moscow Institute of Steel and Alloys.
  • 1989 Founds Alfa-Eco with classmates Fridman and Khan.
  • 1991 Co-creates Alfa Bank, now Russia's biggest non-state bank.
  • 2001 Invests in VimpelCom, Russian mobile operator.
  • 2003 AAR and BP merge Russian assets to form TNK-BP.
  • 2013 State-owned Rosneft buys AAR's TNK-BP stake for $27.7 billion.
  • 2015 L1 Energy acquires RWE Dea.