Kinnevik’s CEO comments on what makes us unique

How we are building Europe’s most exciting portfolio of private, fast-growth companies

Georgi Ganev, CEO of Kinnevik wrote an article on on the strategic transformation that Kinnevik has been pursuing since Kinnevik’s Capital Market’s day in 2019. Below is an excerpt from the article, where Georgi presents the four pillars of Kinnevik’s investment approach. The article is available here in full.

“The team set to work executing upon this bold new course of action. But little did we know that other factors, external factors way beyond our control, would also be at play over the coming year. Shortly thereafter, a devastating pandemic would rip through the world, resulting in dramatic cultural, economic and political shifts. Shifts that transformed our lives, how we work, and how we communicate with others. Seemingly overnight, we saw a significant acceleration of the already rapid digitisation of many services that the team here at Kinnevik had anticipated” 

I. Understanding Complex and Fast-Changing Consumer Behaviors

We are experts in understanding complex and fast-changing consumer behaviors, and are backing the business models that are harnessing the power of technology to address vital, everyday needs and make consumers’ lives better in the digital age. The consumer has always been at the heart of everything we do, and we first capitalised on the shifting telecoms and media landscape in the 1980s, before applying this approach through the dotcom era as retail and services shifted online. And now a tremendous technological progress is happening at an accelerating pace, so we are backing transformative digital businesses from healthcare to e-commerce, and food to financial services.

II. Long-term Track-Record

We have a strong track record of building successful businesses over the long-term - looking at both our larger holdings and our newer growth portfolio. At Kinnevik, we have been constantly focused on finding the next generation of winning businesses and working closely with them over decades of growth. We can do this because we have permanent capital, unrestricted by investment constraints and fund maturities. This makes us a well-placed partner to our businesses at every stage of their journey.

III. Our Sustainability Principles

Our deeply embedded sustainability principles, particularly in climate and D&I, set us apart from other investors and will bring the greatest returns 30 years from now. Given we’re long-term investors, it’s imperative for Kinnevik to back sustainable business models and diverse teams in order to bring the greatest returns for shareholders. We see huge risks in partnering with businesses that look at short-term gains, without thinking about the environmental, social and governance impact they are having for future generations.

IV. Our Uniqueness as a Public Company Providing Exposure to Private Growth

Finally, I want to draw attention to our uniqueness as a public company, which gives our shareholders access and exposure to a portfolio of the world’s most exciting private businesses. Kinnevik offers a rare opportunity for investors, whether institutional or retail, to gain access and exposure to a portfolio of fast-growing, tech-enabled private companies. These companies have the potential to create superior returns, and Kinnevik can remain a shareholder as they move from private to public markets.

Final Reflections

When I think back to that pivotal day at our Capital Markets Day in 2019 when we announced our new strategy, I’m astonished by how much the world has changed and how much progress we have made since. But I'm equally convinced that we’re just at the beginning of a truly transformative era. One where technology will make consumers’ lives better and contribute to a more sustainable and inclusive future. I am thrilled to be at the helm as Kinnevik continues to back transformative digital businesses. I know that the best is yet to come.

Read the full article here