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L1 Technology L1 Technology Logo

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
customer services”.

Alexey Reznikovich
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.

Telecoms 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.

L1 Technology Team

The L1 Technology Team is responsible for the sourcing, screening and presenting investment opportunities for approval by L1 Investment Holdings Board as well as the strategy and operational performance of the existing investment portfolio. L1 Technology Team is supported by an independent Advisory Board.

L1 Technology portfolio

Jean-Yves Charlier Vimpelcom CEO said “Vimpelcom is transforming as a company, rapidly and across its entire global network. Our ambition is to move from a traditional telecommunications company into a digital business that will lead the industry’s new future. Our partnership with L1 as a stable, long term strategic investor is core to our ability to deliver this transformational change. This coupled with its expertise in emerging markets and ability to drive new and innovative partnerships, allows us to unlock real value for our 240 million customers."

Find out more about VimpelCom

Turkcell is the leading telecoms operator in Turkey.

Find out more about Turkcell

Strategic investment of US$200 million in Uber. Travis Kalanick, Uber’s CEO, said; “ L1’s knowledge of emerging markets will be crucial in helping us make cities more accessible, opening up more possibilities for riders and more opportunities for drivers”.

Find out more about Uber

Strategic partnership and $50 million investment in FreedomPop, US wireless internet and mobile phone service provider. Stephen Stokols CEO said, “L1 is not only capable of bringing significant capital, but also delivering valuable and accretive strategic partnerships for digital pioneer companies around the world”.

Find out more about FreedomPop