Kinnevik (KINV) CMD 2024 summary

Strategic transformation and portfolio focus

• Completed a seven-year transformation, reallocating from legacy assets to a concentrated portfolio in health and bio, software, and climate tech, with 96% of value in private companies.

• Core portfolio now consists of five high-performing companies, representing over half of portfolio value, with average 60% growth in the last year and expected 40%+ in 2025.

• Shifted geographic focus to Europe and the U.S., exited emerging markets, and narrowed sector focus, moving away from financial services, food, and marketplaces.

• Three focus areas—Health & Bio, Software, and Climate Tech—represent 76% of portfolio value and 84% of investments since 2023.

• Core companies include Cityblock, Mews, Pleo, Spring Health, and TravelPerk, all showing strong growth and profitability.

Financial guidance and capital allocation

• Distributed SEK 88 billion to shareholders and invested nearly SEK 30 billion in new growth assets, maintaining a strong net cash position of SEK 12.2 billion as of Q3 2024.

• Plans to invest SEK 15–20 billion through 2030, with a slight bias toward follow-on investments, and expects to release SEK 5–10 billion from the portfolio via M&A, secondary sales, and IPOs.

• Anticipates at least three IPOs, aiming for 10 core companies to represent 80% of portfolio value, with 20–40% in public markets.

• Targets 15%+ annual returns from the mature portfolio and 25%+ IRR for new investments, maintaining a net cash position and introducing share buybacks as a capital allocation tool.

• Over 90% of 2025 follow-on investments expected to be allocated to core companies and new ventures.

Business developments and competitive advantages

• Led funding rounds in core companies at balanced valuations, with all core companies profitable or funded to break-even.

• Deployed SEK 2.5 billion into secondary transactions during 2023–24, capitalizing on liquidity needs of other investors.

• Portfolio derisked through disciplined capital reallocation and a mark-to-market approach, with most holdings now performing or stable.

• Permanent capital structure and long-term partnership model attract top founders and enable patient, hands-on ownership.

• Deep sector expertise and founder alignment have made the firm a preferred investor in its focus areas.