Titanium aria: how billionaire Vyacheslav Bresht traded his business for opera

After moving to Israel, the former co-owner of titanium monopoly VSMPO is listening to opera, investing in biotechnology, banking and startups. His wealth has increased by almost half over the year. 
07.05.2015
Forbes
Origin source
Dark glass doors swung open, letting the inside of the restaurant "Kavkaz" the rays of bright sunshine Israel. Shaking hands with the former aluminum magnate Michael Cherney, recalling other friends on a hike to the opera and exchanged a joke with the owner of the restaurant, an old Jew from Baku, Vyacheslav Bresht sat down at a free table. "Ilya sober today, so it's very tasty," - warned №90 on the Forbes list and ordered a vodka. I had a long conversation - this is the first interview Bresht after leaving Russia.

Most of his fortune - $ 950 million for 2015 - Bresht earned on titanium. Together with the CEO of the Ural factory VSMPO Vladislav Tetyukhin in the 1990s, he has consolidated a controlling stake in steel giant. In 2006, "Rostec" became the owner of VSMPO and Bresht left the country. Now he has time to enjoy the opera. How did he manage at the same time increase the state almost twice?

The standard start

Business Bresht engaged immediately after the adjustment. In 1988, together with Alexander Reichardt immigrant living in Germany created Joint"Autolyuks" stnoe company. "We have the testimony of the joint venture was the number 43 and number 44 - Borya Berezovsky," - says the businessman. He had just retired from the First Directorate of the KGB, which came after the Nizhny Tagil Pedagogical Institute. His thesis on the adaptation of young people in large enterprises noted not only teachers. While thinking where to go to work, "people came in costume and offered to serve the homeland." The young man, fluent in English and German, did not refuse. But about this period of his life Bresht say categorically refuses.

In Germany Bresht and Reichardt was a small office with a second-hand fax, and in the USSR - the bus station, where brought to mind the production of AvtoVAZ. Cars sold managers of enterprises in Ukraine, Siberia. With the money they bought the goods for export, such as aluminum. "It cost a ruble twenty, the director let you for three rubles, and you sold for three dollars", - Bresht recalls telling about the first capital. Soon the company was engaged in the supply of computers. The presence of demand foundaccidentally. German partner at the request Bresht bought him a computer, on which he previously only heard. Bresht brought the toy in Russia, where he met immediately persuaded him to sell equipment for 130 000 rubles. "My driver said I was a bad bargain. I immediately called Reichardt and ordered the whole lot "- says Bresht. Computers have become a gold mine for him.

Moscow, 1989. People in musquash caps, come to negotiate with the "Autolyuksom" for the purchase of computers, incredulously looked at his counterpart. They expect to see a German businessman, but in front of them was clearly Russian. Asked Bresht where they Visitors reluctantly answered that represent titanium producer. "So you're from Verkhnyaya Salda" - happy Bresht, dumbfounded companions. All his childhood and youth the son of Romanian emigrant held in Nizhny Tagil, 40 km from Verkhnyaya Salda. Due to the supply of computers to the Urals, he met with the general director Vladislav Tetyukhin VSMPO - luminary titanium production at the plant have worked most of their lives.

"You are a speculator?" - Bluntly asked Tetyukhe"Tourist" Mr. Bresht at the first meeting in a three-star hotel of the capital. Titanium giant was the favorite child of Tetyukhin, but production has been in decline. Metallurg called Bresht help deal with financial problems. Bresht at that time lived in Vienna, but was able to persuade Tetyuhin - said that in Upper Salda can come just two days per month. He even came up with its new partner the position of "friend Tetyukhin." And Bresht in that position enjoyed great prestige in the factory.

Partnership with Tetyukhin Bresht defined the future for the next 14 years. By purchasing shares of the company employees, and Bresht Tetyuhin able to gain control of VSMPO. In 1997 they purchased the bank "Menatep" Mikhail Khodorkovsky and supplier of raw materials - the company "Avisma" in Berezniki. Financed and carried out a bargain Austrian bank Creditanstalt, and the famous American investor Kenneth Dart. By purchasing "Avisma", they exchanged it for 17% of VSMPO. - In - "though he talks, it seems, was not a strong personality, is much more impressive it is not Bresht and Tetyuhin"spominaet employee Hermitage Fund William Browder, who also participated in the negotiations with the "Menatep" and VSMPO.

Soon, the Austrians began to lay claim to a controlling stake, and in 2003, VSMPO interested and Viktor Vekselberg. Both attacks Bresht with Tetyukhin recaptured. "Bresht talks softly enough, if without referring, of course," - says Oleg Tsar'kov, who first worked at Creditanstalt, and then became an adviser of "Renova" Vekselberg. In spite of the opposition in the corporate wars, relations with Bresht him good: for the second year in a row Tsar'kov, now managing partner of Svarog Capital, arrives in Tel Aviv on a visit to the former partner.

In late 1990, discussing a deal to buy "Avisma" in the company and the trustee Browder Darth Michael Hunter Bresht open up, he said that VSMPO it a long time, but in 60 years, wants to retire - a distraction from the business of opera. Browder as Bresht says, grinning - say, about you, and so goes the glory that interrupt the negotiations for the opera. Such cases have Bresht really were, but he says that the advance warningpartners of the need to finish the case before 18:00.

However retire Bresht had before. The third major attack on VSMPO, which threatened to turn into criminal cases, businessmen could not fight off. The new owner was the State Corporation "Rostec", which manages one of Putin and a former intelligence officer, Sergei Chemezov. Realizing that the battle was lost, Bresht flew to Frankfurt and from there to dictate the terms of his surrender. Received $ 680 million for 31% of VSMPO, businessman moved to Israel. On Forbes request for comment for this article, the representative of "Rostec" said his head to talk about Bresht just will not.

Other force majeure

The audience worried: interlude extended several times, and the second act of the opera not started. For the Bavarian State Opera day it was not the best February 18, 2015. Due to the failure of fire protection systems performance had to sing without scenery, and after the first act of the mezzo-soprano Angela Brower became ill. The replacement could be found, but the singer did not know by heart the game, so it performed the score in the hands near the kuls, and the stage went to the assistant director. "This happened for the first time in many years. A quarter of the hall is gone, "- says Bresht. But he was pleased with the voices - Marina Rebeka and Lawrence Brownlee were on top.

For Bresht the performance was the eleventh in his February tour of the Opera, and just a month he visited nearly two dozen performances. Berlin, then three performances in London, a week in New York, returned to Germany, but in Munich, Vienna next on the list and New York again. "Planning for each of the tour - a terrible meal" - says Bresht. The process of the year - many opera houses open sale once the entire season, and need to have time to buy tickets.

"I'm not from anywhere can listen. Usually take up to 11 stalls row, in extreme cases - the first row of the balcony, "- says Bresht.

The climax of the tour was to be a "Carmen" with tenor Jonas Kaufmann - its thousandth anniversary performance. The price of tickets from scalpers up to several thousand dollars, but the singer said he was ill, and the performance was not a full house.

Why such love fortheater? Bresht remembers grandmother spoke Yiddish, which "even the special caps were hiking to the opera." In Nizhny Tagil opera house there, the closest - in Yekaterinburg, is four hours by train. For the first time Bresht went with his grandmother to "La Traviata" by Giuseppe Verdi. But since childhood favorite opera - "Carmen" by Georges Bizet. "But to Wagner, I did not grow as well as to contemporary opera. For me it is a set of sounds ", - says Bresht.

Among the soloists, in the names of which he drew attention in the preparation of its schedule for the year, many Russian singers - Anna Netrebko, Dmitri Hvorostovsky, Olga Peretyatko, rising star Dmitry Korczak, Catherine Syurina from Yekaterinburg. In April, he bought the tickets directly to two operas in one day in Munich and Brussels, having decided to act according to circumstances. Syurina Catherine wrote to him, that will be glad to see in Brussels. Bresht going to get, but eventually flew to Turin at the opera with Peretyatko and Korczak. Tickets for a good opera will not be wasted. Circle Bresht communication tries to build from people with a similar passion. With Russian businessmanE, settled in Israel, almost no talking: "They do not like opera. What to talk about? About Business I'm not interested. "

Oleg Tsar'kov notes that Bresht in Israel communicates with many people, but billionaires among them, he did not meet. His aircraft Bresht not. "If necessary, hire a private", - says the businessman. According to his calculations, to cover the cost of all the hobbies you need $ 15 million on account of interest on them is enough for tickets, flights and hotels. Bresht assures that the business is no longer involved. How did he earn?

collective investment

Former StoreDot office in Tel Aviv, placed in several rooms. Now the company moved to larger premises with a new laboratory and even a small pilot production. It can not afford - in the latest round of investments, the company was valued at several hundred million dollars. Most of the staff of the Israeli startup said in Russian. "Honestly, we specifically picked" - laughing co-founder Simon StoreDot Litsyn. The company's main product - bioorganic batteryry for smartphones, which are charged per 30 seconds. Possible scope is wider technology - charging of electric vehicles, for example. Another development - the film for displays of smartphones and TVs, making the color of the screen brighter and more juicy.

Bresht time to invest in StoreDot $ 2 million at an early stage in the evaluation of the company's value at $ 12 million now its share is 25 times more expensive, about $ 50 million Among StoreDot investors -.. South Korean manufacturer Samsung Electronics and billionaire Roman Abramovich, 12, has invested about $ 10 million. "I was offered to participate in the last round, but the price has been prohibitive. I did not dare, "- says one of Forbes Russian venture capital investors, interested in technology companies.

Bresht says that successful venture capital investments - the merit of his daughter Elizabeth and her husband, Daniel Yammera millionaire, a former top manager of the company Tirus, the German "daughter" of "VSMPO-Avisma". Yammer has become known in Israel after purchase Macsabi football club of Netanya (in 2011 he sold it).

After moving to Israel, the daughter and son-founded the Nation-E group. office districtfound on the rear in the suburbs of Tel Aviv, which is here called "Rublevka". In the neighborhood - the house Bresht old friend and former partner of Khodorkovsky, Leonid Nevzlin. "If you want to inflate the price of the property, started a rumor that buys a house next to Abramovich" - recounts Bresht local bike, parking snow-white Mercedes S-Class around Nation-E office. The playlist Dmitri Hvorostovsky recording car audio diluted classical songs of Louis Armstrong. Until 2007, the Bresht was not right - he used the driver. But Israel had to steer itself - could not find a common language with the local taxi drivers: "In Germany, I talked with taxi drivers on pure German, and they took me for her, and Hebrew, I have not learned."

The Nation-E it is an investor and board member. The company specializes in the protection of energy facilities and networks against cyber attacks. "In the power grids now used electronics. And it also can be hacked, "- explains Yammer, drawing a possible scenario: de-energized, banks, factories, entire cities. Equipment that has developed Nation-E, analyzes tRafik and to prevent hacking of the system. Among the clients of banks, airports. The Company operates and the World Cup in Brazil.

Venture capital investments, and the daughter-in-law Bresht do, bored after moving to Israel. It invested seven projects. In addition StoreDot pair of nested, for example, in Noveto company that has developed a technology directional sound, allowing to get rid of headphones: The camera tracks the position of a person's head and directs sound exactly in his ear, the other people in the room the sound will not be heard. "The market for this technology is huge. You can be in the same room quietly watching television and listening to music without disturbing others. Or use the phone in the car without a hands free », - says Yammer. Their attention and manufacturer of refractory paint, which does not heat even at a temperature of several hundred degrees.

Bresht participate only in those projects, which he likes. So, he did not invest in two biotech companies invested Elizabeth and Daniel. "I think they did not take off", - he explains. Find Societys language Semyon Litsyn of StoreDot, on the contrary, were able to quickly - that, too, was a lover of opera and even made a special application for smartphones, which translates translation. Bresht it has already tested.

"Only in opera audience goes elderly, conservative. Begin to boo when the phone to get. And so the idea is good. "

Litsyn wife organized a club of opera fans in Tel Aviv and arranges trips to European opera houses. But Bresht joined only once, preferring to go to the narrower the company.

In startups, he invests $ 2-3 million. "Invest for $ 20,000 is not interesting, this is a check good dinner in the restaurant a big company. About this attachment will not speak and experience, "- explains Bresht. According to him, start-ups - as young operatic voices are always wondering if they become giants. However, while the major exits he had not. Key money brings investments in bonds and equities.

Actual information

The two-week summer festival in Verbier, Switzerland - a real extravaganza for opera lovers. Top Voice and Orchestra,pektakli every night, strict evening dress code. Tickets sold out immediately. This time Bresht did not, but it helped communication. The bank, in which he served, turned out to be a sponsor of the festival, tickets went Verbe- 2015 millionaire free. Opera was a great help in establishing useful contacts.

Companions Bresht on grocery opera are all sorts of people - and former bankers and doctors. Once, for example, he accidentally met at the opera with one of the hospital doctors in the United States, which it finances - he, too, was an avid fan. The clinic is engaged in research of cancer, and now Bresht learns from every new acquaintance Oncology News.

Biotech companies - his favorite investment object. "Analysts any bank not know more than I do. It needs a genius like Tetyukhin ", - says the businessman.

By the way, former partner Bresht by VSMPO is also actively engaged in medicine - built clinic in Nizhny Tagil, spending on it all his fortune. Invest in this clinic Bresht did not, although Tetyuhin asked him for $ 40 million to buildlstvo additional buildings. "It's all very tied to the government quota, I would have done differently," - says Bresht. After a conversation in 2013, former partners did not communicate anymore.

Annually Bresht invested in shares of about a dozen companies - as well as in start-ups, for $ 2-3 million in each paper. Only portfolio updates much more frequently - changing trends in medicine, he said, every two years. As companies begin to show growth of about 40% of these shares must be disposed of, is convinced the businessman. While he always managed to get out in time. In 2013, for example, he invested in the shares of six biotechnology companies. The average increase for them exceeded 70%. Quotes Intercept Pharmaceuticals increased by 1041%, Regeneron Pharmaceuticals and Seattle Genetics - almost 100% each. However, in 2014 the result was worse, brought the old company: stock Seattle Genetics, for example, fell by 31.5%.

The rule for the sale of one year does not apply to a number of companies, where the businessman invested vdolguyu. According to him, he is ready to increase its stake in them, but the founders did not give - fear of losing freedom. The businessman says his engaged in operational management does not plan: it needs to "break a company by itself" and always be on the farm. So it was decided to have Tetyukhin if one went, the other was supposed to be in Verkhnyaya Salda. However Bresht family already had a conflict with the founders StoreDot, who did not like their intervention strategy. As a result, in-law and daughter Bresht sold their shares. Sam Bresht capital remained.

However, if the investments promise a good profit, Bresht willing to invest not only in biotechnology. In 2011, one of the American banks encouraged him to invest in a newly built skyscraper in New York. Bresht invested in the project $ 10 million, its share is now worth almost five times more expensive. Another part of the money the businessman invested in shares of major banks after the 2008 crisis, their yield - 10-20% per annum. With respect to most of its state Bresht conservative: stores in the cache, or invests in safe instruments such as US municipal bonds.

His life was now much calmer. The exact schedule of visits to operas in February was painted by September. There are even plansat the end of 2017.

"The daughter thinks I'm crazy. And I like "- Bresht says, recalling the parable of the Roman Emperor Diocletian and his cabbage crop.

Do not pull if it at home? Bresht admits that he misses the Bolshoi Theatre. "I want to Moscow, to listen to the opera and the Upper Salda, watch, looks like a factory now. And I do not need "to other cities, - he says. But for some reason, to buy tickets to get in no hurry, though, and said that the entry into Russia it is not closed.