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Kinnevik to increase investments in its growth portfolio, Q3 NAV improves

By Prachi Singh

20 Oct 2021

Kinnevik’s net asset value amounted to 75.8 billion Swedish krona or 273 Swedish krona per share at the end of the third quarter, down by 0.3 billion Swedish krona or 0.4 percent compared to last quarter, and up by 13.3 billion Swedish krona or 21.3 percent compared to a year ago.

The company said in a statement that negative share price developments in Teladoc and Global Fashion Group weighing on the net asset value in the quarter balanced out significant upwards re-valuations of our investments in Cityblock and Betterment. The value of the company’s private portfolio increased by 4.5 billion Swedish krona driven by net revaluations of 2.2 billion Swedish krona and new investments of 2.3 billion Swedish krona.

“We continue to strengthen and build out our growth portfolio at a rapid pace to maintain the momentum of our strategic transformation, and note the interest of founders and investors to partner with us. This is a significant recognition of our ability to identify the businesses of tomorrow and be their preferred investor as they grow and shape a re-imagined everyday,” said Georgi Ganev, CEO of Kinnevik.

During the third quarter, Kinnevik invested a total of 2.3 billion Swedish krona. 205 million Swedish krona was deployed into the existing businesses. It’s largest followon investments in the quarter were 76 million Swedish krona into Cityblock and 70 million Swedish krona into Betterment. The company added four new companies to the portfolio during the quarter, investing 2.1 billion Swedish krona in total into Lunar, Quit Genius, Spring Health and Sure.

Since the start of 2019, Kinnevik has invested 10.9 billion Swedish krona into the growth portfolio and added 14 new businesses across focus sectors and themes. The capital deployed has been split equally between new and existing businesses, driven by an increased number of new investments during 2021.

Due to the successful momentum of recent quarters, financed by the material capital releases from VillageMD and Tele2, the company now expects to invest around 6 billion Swedish krona in total during 2021, and plans to add new companies to the growth portfolio also during the fourth quarter.