An funding fund subsidized through Russian oligarchs sanctioned through the Ecu Union following the invasion of Ukraine has ties to Teneo, an influential corporate-advisory company primarily based in the US.
The general public family members and technique large used to be employed in 2020 through LetterOne, a non-public fairness company primarily based out of Luxembourg that counts sanctioned billionaires Mikhail Fridman, who’s a local of Ukraine, and Petr Aven amongst its cofounders. The contract seems to have paid Teneo greater than $3.6 million to line up interviews and seek the advice of on media technique within the U.S.
LetterOne used to be based through Fridman, Aven, Alexei Kuzmichev, Andrei Kosogov and German Khan — all of whom are probably the most wealthiest industry leaders primarily based in Russia. All 5 founders had been on LetterOne’s board, with Fridman because the chairman, consistent with information from PitchBook reviewed through CNBC. The executives introduced the company in 2013 after setting up Alfa Crew, one of the most biggest conglomerates in Russia.
Fridman and Aven had been accused through the Ecu Union of getting ties to Russian President Vladimir Putin, claims that have been denied in an emailed observation to CNBC. The observation didn’t solution any of CNBC’s questions about LetterOne’s paintings with Teneo or how the funding fund is making plans to transport forward now that two in their founders had been sanctioned. Fridman’s financial institution, Alfa Financial institution, has additionally been sanctioned through the US. He is known as for an finish to the Russian invasion of Ukraine.
After CNBC requested a LetterOne consultant on Monday about their industry, together with their dating with Teneo, a number of pages in their web site, together with the “our other folks” phase, seem to have been wiped as of Tuesday morning. An error message now seems on that phase which indexed the founders and managers on the company. The LetterOne board phase continues to be energetic, but it surely now not displays Fridman and Aven as individuals in their board.
Joshua Hardie, a spokesman for LetterOne, stated Fridman and Aven resigned from the board on Tuesday. CNBC first contacted the non-public fairness company on Monday.
Despite the fact that emails to Teneo weren’t returned, Kathleen Lacey, an organization senior managing director who used to be indexed in a file as running the LetterOne account, informed CNBC in a temporary telephone name on Monday that they have been now not one in all her purchasers and believed her company wasn’t representing them anymore.
The Division of Justice’s FARA Unit, which screens U.S. lobbying and consulting paintings for international representatives, informed CNBC on Tuesday that it believes the contract between Teneo and LetterOne “stays energetic.”
LetterOne has a couple of hyperlinks to Teneo, which used to be based through two Democratic experts who labored for former Presidents Invoice Clinton, Barack Obama and previous Secretary of State Hillary Clinton. The non-public fairness company has been concerned with nearly a dozen offers estimated to be value over $1 billion, consistent with PitchBook. Uber, as an example, noticed a $200 million funding from LetterOne in 2016.
Teneo has since grown right into a consulting large, with previous purchasers together with Dow Chemical and Coca-Cola. Overseas purchasers have incorporated Neom, an organization subsidized the juggernaut Public Funding Fund with the objective of constructing a megacity in Saudi Arabia, and a basis led through an Emirati princess.
Their indexed senior advisors is a who is who of political and industry leaders together with former Republican Space Speaker Paul Ryan, former IBM CEO Ginni Rometty, former Dow Chemical CEO Andrew Liveris and Harvey Pitt, a former chairman of the Securities and Change Fee.
Doug Band, who used to be as soon as one in all Invoice Clinton’s closest aides, based Teneo with Declan Kelly and Paul Keary. Kelly labored because the particular envoy to Northern Eire within the Obama management and helped Hillary Clinton run for president in 2008. Band and Kelly have since left the company, with the latter resigning from being Teneo’s CEO after stories of him under the influence of alcohol and appearing inappropriately at an tournament arranged through the World Citizen nonprofit. Keary was the CEO after Kelly’s resignation.
A freelance between Teneo and LetterOne reviewed through CNBC displays that the consulting company used to be employed in 2020 for a retainer of $150,000 per thirty days to advise the fund on their media technique. Teneo, consistent with the contract, used to be anticipated to “supply strategic suggest and stakeholder engagement recommendation to the corporate and its board individuals(together with, with out limitation, scheduling media interviews, aiding with media briefings, coordinating stakeholder engagements and similar actions).”
Beneath the contract, LetterOne used to be on target to pay Teneo greater than $3.6 million since September 2020. There have been no less than 4 Teneo representatives that labored the account, consistent with different paperwork filed to the DOJ.
Additional paperwork display that via remaining 12 months, Teneo took credit score for seeking to arrange interviews for LetterOne leaders with manufacturers and tv anchors, together with the ones at CNBC, Bloomberg and Fox Industry. A file displays {that a} Bloomberg consultant used to be contacted nearly a dozen occasions to look whether or not LetterOne may just sponsor one in all their Bloomberg Make investments occasions.
There are different ties between Teneo and LetterOne.
LetterOne’s non-executive chairman is Evan Davies, a British businessman who used to be as soon as the Minister of State for Business, Funding and Small Industry. He is additionally a senior marketing consultant at Teneo.
VEON, a telecommunications corporate working in Russia and Ukraine is indexed on LetterOne’s web site as one in all their energetic investments. Ursula Burns used to be chairman of the VEON board for just about 3 years ahead of stepping down in 2020. She later was the chairwoman of Teneo.
In the meantime, VEON introduced on Tuesday that Mikhail Fridman resigned from their board.