RVC implements new investment portfolio assessment methodology


RVC with the support of the consulting company EY has developed a methodology for assessing assets included in the investment portfolio. The new methodology takes into account the modern industry recommendations (IPEV, IE, NVCA, AICPA) and the international financial reporting standards (IFRS 9,13). Its implementation gives the opportunity to unify the result assessment approaches of the investment activities of RVC funds, to increase the transparency, reliability and validity of the indicator calculation.

The developed methodology reveals various assessment aspects of financial instruments used in structuring the deals in the venture capital industry. In addition to the classical methods, it uses such specific venture investment assessment methods as the price of the recent deals, the milestone approach, the venture capital method, the real options valuation method, and others.

The methodology also takes into account the structuring features of the venture deals, including a clause against anti-dilution provision, retention rate, liquidation preferences, mandatory redemption, aspects of share ownership with different rights and others.

In addition to the RVC and EY methodology, the instruments have been developed that allow to automatically generate the assessment templates, taking into account the life cycle stages of companies and the deal structuring features.

Aleksey Basov, Deputy General Director, Investment Director of RVC
The methodology development is a work continuation on improving the portfolio management quality specified as a priority goal within the RVC investment strategy. The global practice implementation in the executive team work is our contribution to the market development and professionalization.

Now in the RVC portfolio there are 27 funds and 202 portfolio companies. In 2018, the total amount of funds with the participation of RVC capital increased by 40% and amounted to RUB 48.6 billion, of which the RVC share amounted to RUB 27.4 billion. Last year, 30 exits from the RVC funds from portfolio companies totaling RUB 1.7 billion took place, and 21 exits — with a positive financial result.

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