The technology and telecoms sectors are undergoing remarkable change. L1 Technology is making strategic investments in leading B2B and B2C disruptive technologies in the telecoms and technology sector, which are disrupting traditional business models, and which can benefit from the larger range of telecoms operators and grow symbiotically together.
“Our strategy is to look
for digital companies
that will create new
digital business operating
models of the future
and new innovative
forms of real-time
Managing Partner L1 Technology
Investing in customer-orientated digital services
L1 Technology aims to invest US$2–3 billion in mid-to-late-stage technology growth opportunities. It is targeting investments between US$100 and 500 million, and is looking for new strategic partnerships.
Currently, L1 Technology is focused on opportunities to invest in FinTech, mobile-enabled commerce, Internet of Things software and infrastructure, and HealthTech.
As entrepreneurs we bring strategic expertise, deep telecoms sector knowledge and nearly 30 years’ experience in emerging markets, as well as our own capital, to the companies in which we invest.
In 2016 we made a strategic investment of US$200 million in Uber Technologies Inc., with L1 providing local understanding and consumer knowledge in many emerging markets.
New operating models and revenue streams
L1 Technology believes in the power and importance of constant innovation. It recognises that the telecoms industry needs to reinvent its business model and identify new, additional revenue streams on top of traditional connectivity revenue.
We are actively looking to invest in digital technologies which will revolutionise the operating models of the telecoms sector and improve efficiency.
New technology team
L1 Technology has recruited an international technology team, with experience in senior management roles, private equity and consulting. The team is responsible for presenting investment opportunities to the L1 Investment Holdings Board, as well as the strategy and operational performance of the existing investment portfolio. It is assisted in this task by an independent, expert advisory board that includes CEOs from the telecoms industry and highly successful internet entrepreneurs.
L1 Technology has established a global network of
technology experts and entrepreneurs to aid its search
for new investments.
Last year VimpelCom participated in the continuing consolidation and rationalisation of its footprint by announcing:
- the creation of a JV with the Algerian National Investment Fund
- the merger of its Italian assets with Hutchison
- the merger of its assets in Pakistan with Warid Telecom
- the sale of smaller assets in Burundi, Central African Republic, and Zimbabwe
VimpelCom also reached settlements with the DOJ, SEC, and Dutch Public Prosecution Service regarding their investigations into VimpelCom’s business in Uzbekistan. L1 recognises the significant efforts that VimpelCom is undertaking to improve its compliance structures and related controls, consistent with best practice and its commitments under the settlement agreements.
At Turkcell, L1 continues to try to find a resolution to a dispute with the Cukurova Group, which holds a share- holding of a similar size to L1 in Turkcell. Turkcell has distributed dividends in 2015, of which L1 has received almost US$200 million
Looking to the future
Ultimately, success in telecoms and technology will belong more and more to companies that are truly responsive to customer needs on an increasingly personalised basis, that find ways to engage and retain their customers and that are open to internal disruption through innovation.
These are the kind of businesses – like Uber Technologies Inc. – with which L1 Technology looks to make strategic investments and partnerships.