Our financial report for 2Q26 is now published, reflecting a stable quarter where portfolio company development remains strong while public comps provided valuation headwinds. Our CEO Dave Nangle outlines key factors such as an growing impact of AI, continued exit focus and rising portfolio stars affecting VEF’s 2Q26 and its future.
Focus on exits and capital allocation
Irrespective of being happy with what is happening under the hood at VEF, as management and shareholders, we are very aware of how our shares trade and are working logically to put things to right. Our short-term capital allocation priorities remain clear. The key focus is delivering the right portfolio exits at around NAV and use proceeds to de-lever our balance sheet. At our current share price and traded discount, buying back our own shares runs a close second and is very much on our minds and radar.
AI and its impact on our portfolio – Creditas in focus
AI has swiftly moved from a future consideration to a present operational reality across fintech, and it is the theme front and centre across our portfolio. Credtias is a great example in our portfolio of AI translating into genuine operating leverage and value creation. Creditas employed around 4,000 people two and a half years ago, that fell to roughly 2,200 six months ago and stands below 1,800 today. Over that window the loan book/revenues have roughly doubled in size while more than halving its workforce — a 4-5x productivity gain, with a further c. 40% lift in the last six months alone.
Abhi: a rising star of the VEF portfolio
Abhi is emerging as one of the rising stars of our portfolio. We backed the company at seed stage five years ago. From a standing start in 2021, Omair Ansari and team have built a full-stack digital orientated bank for Pakistan with growing traction in MENA. The group turned EBITDA and cash-flow positive within months of launch and has broadly remained there. Today it runs at an ARR of north of USD 85 mln and an EBITDA run-rate above USD 20 mln, has disbursed more than 6.6 million loans, opened over 1.5 million bank accounts and processed over USD 1 bln since inception — with the business still compounding rapidly. Abhi feels like one of the names that could well play a bigger role in our NAV in the future
VEF CEO, Dave Nangle:
“In 2Q26 we spent a lot of time with our companies and founders, and they continue to be in good health and on a positive trajectory. Key for VEF, Creditas continues to accelerate growth, combining this with focused AI led improvements in operational efficiency and productivity. We will keep working with our portfolio companies to compound value and opportunistically converting that quality into exits at or around NAV. We remain confident we can deliver more exits through 2026-27.”
For a full read of Dave Nangle’s management report, please see our 2Q26 report here.