As Ukraine Boxing Great Heads to War, His Family Office Plows On

Ben Stupples, Bloomberg News

(Bloomberg) -- He scans his phone again and again, checking anxiously for any word from Ukraine, any word from the champ.

The champ? That’s boxing legend Wladimir Klitschko, who has gone to fight for his homeland with his brother Vitali, a one-time prizefighter himself who is now mayor of Kyiv.

The man worrying over the phone is Kostya Kovalchuk. He’s Ukrainian, too -- and the one tending Wladimir’s $100 million personal fortune through his family office, KLIWLA.

It’s an unusual position to be in, to say the least. As Russian forces advance on Kyiv, Kovalchuk is safe in London. But he says he’s exactly where Wladimir Klitschko wants him: Tending to a diverse portfolio of technology, commodities and private equity, while also raising millions for war relief.

“I keep exchanging messages with Wladimir every day,” Kovalchuk, 37, said in a recent Zoom interview from his London office.

“I messaged him the other day and said: ‘How are you? I’m worried about you,’” Kovalchuk said about Wladimir, 45, who enlisted in the reserve army several weeks ago. “He replied to me saying, ‘Be a warrior -- not a worrier.’”

‘Dr. Steelhammer’

Kovalchuk’s goal hasn’t changed over the past six years, and it’s the same as most family offices: to ensure Klitschko’s fortune survives for generations. That mandate has taken on a weightier significance since Russia’s invasion.

Klitschko, who was unavailable for an interview, has a young daughter with U.S. actress Hayden Panettiere, 32, who said recently that their child is safe and not in Ukraine. KLIWLA doesn’t manage money for Vitali, 50, due to his political career.

Wladimir Klitschko is one of the longest-reigning heavyweight champions in boxing history and was among the world’s best-paid athletes before his retirement in 2017. He won 93% of 69 fights over two decades, earning him the nickname “Dr. Steelhammer” in a nod to his doctorate in sports science from the University of Kyiv.

Liechtenstein-based KLIWLA -- the first three initials of Klitschko’s last and first name -- was created to preserve those winnings.

“Wladimir worked hard to earn his prize money,” said Kovalchuk, a former UBS Group AG investment banker. “We’ve now had a few very successful years.”

Venture Capital

KLIWLA has acquired stakes and short-term debt in at least a dozen early-stage companies over the past year in the U.S., Europe and Asia. It’s also involved in hedge funds and direct deals outside Kovalchuk’s and Klitschko’s native Ukraine.

But with about 35% of assets invested in Ukraine -- and the bulk of it in real estate -- some of those annual gains are now at risk.

Kovalchuk, though, has other pressing matters on his mind.

“My family apart from my parents are at the epicenter of the battles,” Kovalchuk said. “Your imagination plays games with you. It feels like you’re on adrenaline the whole time.”

Kovalchuk returned from Ukraine shortly before the Russian invasion. He plans to stay in London and help gather funds for humanitarian efforts in Ukraine alongside managing KLIWLA’s investments. So far, he’s helped raise more than $1 million and he’s reaching out to global businesses in order to gather further financial aid.

It’s not quite what he imagined when he joined as KLIWLA’s managing director in 2016.

But as Klitschko rallies support in Kyiv, Kovalchuk is committed to doing what he promised the champ he would.

“I have a duty as a fiduciary to manage his family assets,” he said. “We have plenty of resources to take care of his family and the family office workers.”