Fair value volatility in unlisted investments
Most holdings are private and valued using latest transactions or models, which can change materially.
- Scope
- Portfolio NAV and reported operating results
- Materiality
- high
VEF
VEF is a listed investment company focused on private fintech businesses in emerging markets. It takes minority stakes in growth-stage companies across payments, credit, savings, investments, embedded finance, and related financial software, with portfolio exposure concentrated in markets such as Brazil, Mexico, India, and Pakistan.
0.39
0.38
| % | |
|---|---|
| Private fintech investments | 70% Equity stakes in private companies across payments, credit, savings, investments, and fintech software. |
| Portfolio valuation and monitoring | 15% Quarterly valuation, monitoring, and reporting of portfolio holdings and liquidity investments. |
| Active ownership and board support | 10% Governance, strategic guidance, and board participation in portfolio companies. |
| Liquidity investments | 5% Short-term liquid holdings maintained alongside the core investment portfolio. |
VEF’s direct counterparties are the entrepreneurs and management teams of private fintech companies that receive...
- Private fintech founders and management teamsprimary
They receive minority equity capital, governance support, and long-term partnership to scale their businesses.
- Growth-stage fintech companiesprimary
They buy capital and strategic backing to expand products, users, and market reach.
- End consumers of portfolio companiessecondary
They use the digital financial products created by VEF’s portfolio companies, such as credit and payments.
- Institutional and public shareholdersprimary
They provide capital to VEF and expect exposure to emerging-market fintech growth.
VEF focuses on emerging markets, with portfolio exposure highlighted in Brazil, Mexico, India, and Pakistan...
- •Portfolio exposure is concentrated in Brazil, Mexico, India, and Pakistan
- •Focus is on populous emerging markets with scalable fintech demand
- •Geography matters because regulation and adoption differ by country
- •Returns depend on local market depth, competition, and fintech penetration
- •Investment activity is tied to emerging-market financial services ecosystems
VEF’s strategy is to invest in growth-stage fintech companies in emerging markets and to support them through active...
01
Deploy capital into scalable emerging-market fintechmedium-term
The portfolio is built around large, underpenetrated financial markets with room for digital adoption.
02
Use active ownership to improve portfolio outcomesshort-term
Board representation and close engagement help support execution, governance, and scaling.
03
Embed responsible finance and ESG standardsmedium-term
Sustainability and ethics are part of the investment screen and portfolio management process.
VEF’s main risks come from the valuation and performance of private portfolio companies, which can change materially...
Emerging-market country and regulatory risk
The portfolio is concentrated in markets such as Brazil, Mexico, India, and Pakistan, each with distinct rules and cycles.
- Scope
- Portfolio company performance and exit timing
- Materiality
- high
Portfolio company execution risk
Returns depend on founders and management teams scaling products, users, and profitability.
- Scope
- Investment outcomes and valuation marks
- Materiality
- high
Fintech credit and consumer behavior risk
Many portfolio companies operate in payments, credit, and financial services where demand and credit quality can shift quickly.
- Scope
- Underlying portfolio company earnings
- Materiality
- medium
Fair value measurement of private holdings
Can materially change NAV and profit or loss each quarter
Level 2 and model-based valuation inputs
Sensitivity to assumptions and calibration
Share-based incentive accounting
Affects compensation expense and equity
: 11/08/2026