L1 Technology looks for acquisition and investment opportunities within the global technology space with a strong focus on the software and data sectors.
We seek to invest in technology businesses which can be leveraged as platforms to expand internationally, through acquisitions or broadening the product set.
Our permanent capital and long term operational focus, provides L1 Technology with the ability to underwrite hold periods longer than a typical private equity fund. In addition, we have the flexibility to own majority control positions or large minority stakes.
Our strategy is to invest in technology and software companies that will enable businesses to improve their productivity.Alexander Pertsovsky Managing Partner L1 Technology
Proactive internationally renowned technology Advisory Board
We have appointed an Advisory Board of internationally renowned Industry leaders and specialists. They are deeply involved in supporting the investment team.
Based in London, L1 Technology has recruited a strong team of deal professionals from Blackstone, Summit Partners, Morgan Stanley and McKinsey.
L1 Technology’s Advisory Board includes Nadeem Syed (CEO of Misys/Finastra and former group VP at Oracle), Jos White (Founder of MessageLabs), Brent Hoberman (Founder of Lastminute.com and Made.com), Osama Bedier (former Vice President of Payments at Google and head of Google Wallet, current Founder/CEO of Poynt), and Denis O’Brien (Founder of Digicel and ESAT Telecom Group).
New investments update
In 2016, L1 Technology made a strategic investment in Qvantel, the leading provider of cloud-based Business Support Solutions (“BSS”) for telecom operators.
Since investing, L1 has supported Qvantel - in structuring a global go-to-market partnership with Ericsson (including full product integration), in augmenting its management team by appointing veteran telecom software executive, Ove Anebygd, as CEO, who joined Qvantel from Ericsson, and in growing the company from 250 employees to nearly 800.
On the B2C side, L1 Technology announced a USD $50 m investment in FreedomPop, which is disrupting the businesses of traditional mobile carriers by giving people the means to use mobile devices free of call charges. L1 received clearance from the Committee on Foreign Investment in the United States (CFIUS) for this investment.
L1 Technology also made a B2C strategic investment of USD $200 m in Uber with L1 providing local understanding and consumer knowledge in many emerging markets.
Transforming VEON from telco to tech company
L1 Technology has a 47.85% voting stake in VEON (formerly VimpelCom), the global technology company headquartered in Amsterdam, and a 13.22% stake in Turkcell, Turkey’s leading telecoms operator.
Veon delivered all of its 2016 financial targets, generating USD $588 m in underlying equity free cash flow. Drawing on its 20 years’ experience in the telecoms and technology sectors, L1 Technology’s aim is for VEON to transform from a traditional telco into a global technology company.
VEON is making good progress with its transformation. It completed the merger of its Italian assets with CK Hutchison. VEON has introduced a new dividend policy with a 2016 dividend of USD 23 cents per share. VEON achieved a second listing on Euronext Amsterdam in the second quarter of 2017 to broaden its European investor base on the back of an increasing free float. Finally, the VEON internet platform is launching in several countries during 2017, having successfully launched in Italy in the fourth quarter of 2016.
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."
Turkcell is the leading telecoms operator in Turkey.
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”.
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”.