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Valeria Kogan, Chairman of the Board of Smartomica
The representative of the new investors of Citadele Bank addressed AmCham members on how to make investments during periods of economic and geopolitical uncertainty, and elaborated on his investment model.
Tim Collins, CEO and Founder of Ripplewood Advisors said they are excited about their investment in Latvia and hope it will attract more investment to the country.
Mr. Collins explained his investment model. According to him, all of their investment decisions are based on six factors: risk, volatility, visibility, complexity, responsibility and returns.
In his view, risk is about the ability to understand the probability of outcomes. Skills to evaluate and mitigate risk require strategic analysis, and addressing things to mitigate real risk is a key.
In Mr. Collins’ view, visibility is an ability to predict the outcome, however some outcomes are difficult to foresee. However, in his view, “Latvia is a pretty safe-based bet.”
While visibility is a really good thing, the opposite is true about complexity.
Responsibility is about purpose and purpose-driven organizations outperform. Responsibility is good business and also feels good.
Asked about reasons behind the recent investment decision, Mr. Collins reiterated that Citadele has a good business culture and strong customer focus, and that he sees the bank becoming a regional leader. "We love the culture of this bank and we think that over the long-term it will prosper. This management team is focused on a partnership with customers in both the good and bad times", he said.
Mr. Collins concluded his remarks by listing three major principles of every investment decision he has recently undertaken. He invests only if he likes the project and people involved, believes that it is interesting and important, and that it will ultimately bring profits. "We like the people at Citadele, we believe Latvia is important place to invest and we think we will make money. With this investment we will be able to serve the customers in a new and creative way, especially, supporting the SME sector in Latvia," he told.
A group of international investors led by Tim Collins are to become the majority owners of Citadele Bank, the largest local bank in Latvia, with 75% stake.
The luncheon was sponsored by J.SAFRA SARASIN GROUP.
AmCham is a place to meet representatives of other industries and understand the business environment.
Signe Velina, Market Access Manager Latvia of Johnson & Johnson