"The natural effort of every individual to better his own condition ... is so powerful, that it is alone, and without any assistance ... capable of carrying on the society to wealth and prosperity." - Adam Smith
Legatum Ventures passionately believes that business is development. Over two decades of investing in emerging markets has enabled the Legatum Group to accrue significant insights into the positive impact that commercial endeavour and efficiently allocated capital can have on developing economies. In its purest form, business-led development means grass roots entrepreneurship, a mechanism that is not only empowering for the individuals concerned, but also leads to highly scalable and market based solutions. Certain sectors in particular offer a 'multiplier effect' whereby targeted investments can accelerate prosperity through improved health, knowledge, productivity and capital efficiency. Legatum Ventures identifies talented entrepreneurs whom we can support with patient capital to achieve a shared vision of sustainable development across a range of sectors.
Legatum Ventures' investment strategy is driven by four core principles and is informed by the Prosperity LadderTM.
- Simple Big Ideas: The most successful investments are made when they are supported by 'Simple Big Ideas', as opposed to overly complicated analysis;
- Transition: The greatest opportunities arise during times of transition, when risk is mispriced and capital is scarce. Investing at such times can yield both extraordinary social and financial returns;
- Patience: Investing in development requires patience. Change does not happen overnight and greater value is realised through a persistent pursuit of one's goals than through an impatient search for short term success;
- Multiplier Effect: To achieve outsized social and financial returns, we focus on themes and sectors that offer a 'multiplier effect'.