LHV – The Partnership
Twelve partners dedicated to excellence in our business
Clear Baltic focus
Five business lines:
Corporate Finance
Asset Management
Venture Capital
Investment Services
Structured Finance
Operating Principles
Long-Term CommitmentIn the long-term prosperity of our clients lies the key to our own success.
Dedication to ExcellenceIn-depth knowledge about our clients’ businesses and pursuits paves the
way to long-term relationships.
ReputationThe impeccable reputation of LHV, and that of our people, is the cornerstone of our endeavours. Losing our reputation would equal losing our business.
People and Organisation Our main assets are our people.
Corporate Finance
Highly skilled and motivated team of 6 partners and 2 analysts
Personal experience from major Baltic transactions
Extensive contacts among Baltic industrial and opinion leaders
Providing a wide range of tailor-made solutions in the following areas:
Mergers & Acquisitions
Strategic and Financial Advisory
Capital Raising
Credentials – Strategic Advisory
Ministry of FinanceMarch 2000
Drafting of the business plan and financing alternatives for the $100m Estonian Gene Heredity Project.
December 2000
Strategic advisory on involvement of private sector financing into Estonia’s health care sector.
March 2000
Strategic advisory on formulating the business and revenue models for the transport and logistics sector of Estonia.
May 1999
Preparation of the trade sale of 49.5% of AS Norma to Autoliv AB of Sweden.
April 1999
Strategic advisory on the expansion of Selver supermarket chain.
2001
Advisor to YIT in the tender offer to minority shareholders of FKSM.
Credentials – Financial Advisory
Pärnu Hospital
2001
Drafting of financial model and business plan for the new building of Pärnu Hospital.
Ministry of Social Affairs
2001
Strategic advisory on healthcare reform for the Ministry of Social Affairs.
2001
Drafting of the financial model for the new building of Tartu University Hospital.
Credentials – M&A Transactions – Buy Side
December 2000
Advisor to International Water in the privatisation of 50.4% of AS Tallinna Vesi.
EEK 1,338,000,000
December 2000
Advisor to LNT, the largest private TV station in Latvia, in their acquisition of 100% of AS ESTV, the operator of TV1 in Estonia.
Credentials – M&A Transactions – Sell Side
City of Tallinn
March 2000
Advisor to AS Eesti Elektrivõrkude Ehitus and its majority shareholder on the trade sale of 59% of the company to PVO-Palvelut OY (now Empower OY) of Finland.
2001
Advisor to the City of Tallinn in granting a 30 year lease of the district heating operations of the Tallinn District Heating Company.
1999
Advisor to the minority shareholders of AS Fanaal, in the strategic trade sale initiated by the majority shareholders.
Credentials – M&A Transactions – Sell Side
2001
Advisor to AS FKSM and its majority shareholders in the trade sale of 53.76% of FKSM to YIT Construction Ltd. of Finland.
2000
Advisor to AS Eesti Buss in the trade sale (51%) of its subsidiary Nordeka.
Credentials – Capital Raising
2001
EGeen International Inc.
Domestic capital raising for the commercial arm of the Estonian Genome Project.
Asset Management
PhilosophyThe application of a highly disciplined and clearly defined approach to investing and portfolio construction.
LHV Asset Management believes in the benefits of global investing and portfolio diversification.
Team2 partners
Investment experience since the inception of the Baltic financial markets
ClientsLHV Asset Management can best add value to clients with financial assets starting from EEK 0.5m ($30,000).
Asset Management – Portfolio Management
Prepares investment strategy to meet the needs of each individual client
Global asset allocation is the starting point of the investment process …
… that is realised through a range of products:International equity funds
Private equity
International equities and bonds
The discipline of putting chosen strategies into practice is as vital as the choice of the strategy itself, therefore we emphasize the importance of:
Specific portfolio targets and risk control
Benchmarking
Reporting
Asset Management – Investment Funds
Pension Funds:Voluntary Pension Fund (3rd pillar pension fund)– aims to bring additional earnings to LHV’s investors after retirement.Mandatory Pension Funds (2nd pillar pension fund) – LHV Asset Management is currently applying licenses for two mandatory pension funds:
Investing only in fixed income securitiesBalanced fund - 50% equities and 50% fixed income
Money Market Fund A+Investing in Euro securities offers returns that are comparable to EEK yields. Lowest risk, highest liquidity instrument on the Estonian market
Third party investment funds
Venture Capital www.lhvventures.com
Early stage and expansion phase funding
Hands-on participation in strategy and operations
Focus on IT and emerging sectors
Venture Capital – Portfolio Companies
January 2000
Internet enabled recruitment and HR development
Central and EasternEurope
February 2000
E-solutions provider
Baltics
March 2000
ISP and telephony provider based on broadband technology
Estonia
April 2000
“Amphora” groupware producer
Estonia
April 2000
System integration and software development
Latvia
April 2000
Outsourcing of IT services
Estonia
October 2000
SMS messaging and mobile service
Baltics
September 1999
Online Auctions Network
Baltics
Investment Services www.lhv.ee
LHV Investment Services makes investing easy and generally reachable.
LHV Investment Services enables diversification and capital growth through global investing.
LHV Investment Services lowers barriers to investing with low commissions and no minimum balances.
Investment Services www.lhv.eeServices include:
Online trading with stocks quoted on Tallinn Stock Exchange (TSE)Online trading with stocks quoted on NYSE, Nasdaq, AmexLHV is the first to intermediate options noted in the US markets via Internet. As our newest service, we also offer Estonian options via Internet.Kasvukonto - mathematically optimized investment product for the new generation. Personal contact through Customer Support and personalised e-mails.
Learning toolsMost popular financial discussion forumsGreat learning tools featuring investment school and virtual portfolios Daily newsletters, market overviews and stock features.
Structured Finance
Structured Finance is involved in in-depth analysis and engineering of financial products.
Services include:
Managing LHV Arbitrage- the first hedge fund-like investment vehicle in the Baltic States.
Analyzing clients’ currency and interest rate risks providing customized solutions in covering risks dynamically.
Providing liquidity to LHV web based equity option trading. Structured finance department is the most active market maker in the Baltic equity options.
LHV Contacts
Corporate Finance:Tallinn Office ph: +372 6 110 300 fax: +372 6 110 310
Riga Office ph: +371 7 814 256 fax: +371 7 814 249
Asset Management ph: +372 6 108 453 fax: +372 6 110 310
Venture Capital ph: +372 6 110 305 fax: +372 6 110 310
Investment Services ph: +372 6 108 400 fax: +372 6 108 402
Structured Finance ph: +372 6 108 446 fax: +372 6 108 402
Offices in Tallinn Office in Riga
Roosikrantsi 2 Maakri 19/21 Kalku iela 10
Tallinn, 10119 Tallinn,10145 Riga, 1050