VEF AB (publ) ("VEF") publishes an Exits and Capital Update, summarising recent success in delivering exits and how they will be a key lever in closing the discount to NAV by (1) validating our NAV marks, (2) strengthening our cash and balance sheet position and (3) facilitating a share buyback.
VEF has now delivered 3 exits in close succession bringing in a total of USD 32 mln gross proceeds, demonstrating our ability to realise investments at/around our NAV marks, and strengthening the balance sheet with fresh capital.
These exits directly validate 28% of our NAV marks, delivered at a 3% premium to the aggregate pre-transaction NAV value, which represents a 1.4x CoC and 11% IRR over a 3-year investment period. Including unrealised gains, these transactions represent an aggregate 2.3x MoIC and 25% gross IRR in what was a very difficult investment vintage for the industry.
Our balance sheet has been strengthened, with a pro-forma liquidity position of USD 45 mln*, restoring a net cash position with sufficient headroom for (partial) paydown of bond and opportunistic share buybacks.
We have recently announced a share buyback program for up to 5% of outstanding shares. We expect to continue to buy back our shares and pay down our debt with additional exits, which are a priority for 2025, until our discount to NAV narrows materially.
A short investor presentation articulating this Exits and Capital Update is attached to this press release.
"After strong delivery on the exit front, our balance sheet is strong. In the short term, capital-in is prioritizing deleveraging our balance sheet and share buybacks. Medium to long term, we look forward to getting back on the front foot investing - the opportunity for the future of finance across growth markets remains immense," comments Dave Nangle, CEO at VEF.
*Subject to settlement of funds and no material FX changes.
For further information please contact:
Cathal Carroll, Investor Relations: +46 (0) 8-545 015 50
About Us
VEF AB (publ) is an investment company whose Common Shares are listed in Sweden. We invest in growth stage private fintech companies, take minority stakes and are active investors with board representation in our portfolio companies, always looking to back the best entrepreneurs in each market. We focus on scale emerging markets and invest across all areas of financial services inclusive of payments, credit, mobile money and wealth advisors. VEF trades in Sweden on Nasdaq Stockholm's Main Market under the ticker VEFAB. For more information on VEF, please visit http://www.vef.vc.
