Business Concept and Investment Strategy

Investment Strategy

Vostok New Ventures Ltd (Vostok Nafta) is an investment company with the business concept of using experience, expertise and a widespread network to identify and invest in assets with considerable potential for value appreciation, with a focus on companies with network effects.
Vostok New Ventures intends to create value through professional investing activities, building on a structured process for continuous analysis of both current and prospective acquisitions.

Our aim is to undertake investments that our shareholders are limited or unable to pursue themselves. This implies managing risks associated with low transparency and weak corporate governance as well as illiquidity. An active investment philosophy is deemed necessary to achieve the appropriate level of risk in relation to the return potential.

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.

Active Ownership

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.

 

 

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