More from these Authors

• Case | HBS Case Collection | October 2019

  Kaspi.kz IPO

  Victoria Ivashina and Esel Çekin

  This case follows Kaspi.kz, a private equity (Baring Vostok) co-owned retail bank in Central Asia that evolved into a fintech, payments and e-commerce company. It provides insights into private equity financing, portfolio company management, and initial public offering practices. In particular, the case focuses on (i) the bank’s journey from a traditional bank that serviced only corporations to an online platform, and (ii) the timing and process of preparation for an IPO. The management initially concentrated on profitability, but they soon shifted their emphasis to customer experience. The results were rewarding: Kaspi.kz became the number one player in online commerce, online payments, and consumer financing in Kazakhstan. The challenge of the IPO decisions is its timing: communicating the success of the fast transformation of the firm and its potential for further growth, especially in an emerging market like Kazakhstan, was far from trivial. From a business perspective, even a short delay of six months could potentially add millions of dollars to its value. Kaspi.kz’s private equity investor was interested in commencing a formal exit via an IPO, but the valuation was an important consideration. The case also provides a unique insight into financial fragility of the retail banking model, and how integration into an e-commerce platform interacts with the retail banking model.

  Keywords: Finance; Central Asia;

  Citation:

  Ivashina, Victoria, and Esel Çekin. "Kaspi.kz IPO." Harvard Business School Case 220-007, October 2019.  View Details

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• Background Note | HBS Case Collection | August 2019

  Analytical Tools in Private Equity: Return Bridge

  Victoria Ivashina and Abhijit Tagade

  This note explains the rationale and derivation behind “return bridge,” a key analytical tool used in the private equity industry to understand sources of value-add. The note elaborates on the advantages and the shortcomings of the return bridge.

  Keywords: return bridge; Private Equity; Value Creation; Analysis;

  Citation:

  Ivashina, Victoria, and Abhijit Tagade. "Analytical Tools in Private Equity: Return Bridge." Harvard Business School Background Note 220-019, August 2019.  View Details

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• Case | HBS Case Collection | August 2019

  Subscription Lines Dilemma

  Victoria Ivashina and Terrence Shu

  This case follows a fictional managing partner of a private equity firm, as she contemplates whether to utilize subscription lines of credit in her firm’s funds. Subscription lines are revolving lines of credit secured by commitments from a fund’s investors. Private equity firms are increasingly using these lines to boost metrics and profits on their funds, but the benefits to investors are debatable. Because of this, the firm in the case had previously avoided using such lines. However, faced with the growing popularity of the practice in the industry and an increasingly competitive return environment, it is forced to reevaluate this position.

  Keywords: Private Equity; Credit; Strategy;

  Citation:

  Ivashina, Victoria, and Terrence Shu. "Subscription Lines Dilemma." Harvard Business School Case 220-025, August 2019.  View Details

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