We focus on high-growth, tech-enabled businesses that benefit from network effects. We like sectors with high barriers to entry where we can see long-term returns – such as mobility, marketplaces and digital health. We’re active investors, bringing deep sector experience and striving to support our portfolio companies at the board level and beyond. We’re knowledgeable about both emerging and developed markets, from Europe to the Middle East and North Africa.
The foundation for the investment activities is fundamental analysis of primarily unlisted companies. In markets and sectors where Vostok New Ventures has particular knowledge and expertise, such as in Russia and online classifieds, the return requirement may sometimes be lower while in sectors where we do not have the same experience of investing, the requirement may be higher. The latter is intended to compensate for an increased amount of risk.
One way of managing corporate governance risks in the portfolio companies is to pursue an active ownership policy. Active ownership is important in all markets, but especially in emerging markets where corporate governance risks can take on additional dimensions to that of more developed markets. Over the years, Vostok New Ventures has built up a considerable ability for implementing an active ownership in emerging markets. This can take many different forms, of which board representation is one.