Lighthouse Capital is a value adding investor focused on identifying and supporting opportunities for accelerated shareholders’ value creation at the juncture where the established brands in media, entertainment, e-commerce and luxury seek to access and adopt the world’s cutting-edge artificial intelligence, content marketing and virtual & augmented reality technologies.

In Europe we make highly concentrated, active investments in turnarounds and repositioning of European companies in media, entertainment, e-commerce and luxury industries, focusing on supporting those companies with modernization, scaling and internationalization of their business models.

In the United States we focus on providing growth capital to companies operating in artificial intelligence and virtual reality space, putting emphasis on the commercial applications of artificial intelligence, virtual and augmented reality technologies in media, entertainment and e-commerce industries.

 

 

About Us

Lighthouse Capital has been established by Sergey Skaterschikov and Izabela Depczyk.

Sergey Skaterschikov is a veteran investor whose prior investment firm Skate Capital Corp completed over a dozen of investment transactions across various European capital markets, from Russia to Portugal, and from Germany to Poland (see Completed Transactions).

Izabela Depczyk is an international marketing and media executive with her last engagement being CEO of the Warsaw Stock Exchange-listed Artnews S.A. that she turned around from a small distressed Polish art dealer (called Abbey House Group S.A. at that time) into the world’s largest art media company at the time of her departure known as Artnews S.A. (see Artnews exit press release).

Completed Transactions

Equity Investment,
Restructuring
Advisory

2016

Short Term
Trading Strategy

2016

Short Term Equity Investment
Supporting Refocus of Business Strategy

2016

   

Series B Investor,
All-Equity Merger

2016

   

M&A Advisory,
Strategic Advisory

2015

   

M&A Advisory,
Strategic Advisory

2014

Flagship Principal
Investment, Sale to
a Strategic Buyer

2004-2014

Private Placement

2013

Activist Investment
and Timely Exit

2012-2013

Turnaround of
a Regional Art Fair

2011-2013

Buy Side M&A Advisory,
Strategic Advisory
to a New Owner

2013

Growth Equity
Investment

2013

Investment in
Special Situation

2013

Private Placement of
Equity and Bonds

2013

Growth Equity
Investment

2013

Capital Increase

2013

Capital Increase

2013

Advisory on IPO Transaction
and Corporate Governance

Since 2006

Private Placement
and Advisory

Since 2004

Equity Investment and Restructuring Advisory

 

 

Short Term Equity Investment, Supporting Refocus of Business Strategy and Repositioning of Equity Story

 

 

Short Term Trading Strategy

Lighthouse Capital made its first exit. The company has sold an equity stake of undisclosed size (and below mandatory reporting threshold) in Italy-listed big data and software company Expert System SpA achieving 8.1% return over approximately three weeks or over 100% annualized return on this investment.

This realized investment return has significantly outperformed all applicable indices for the same period, including MIB Index and FT World Information Technology Index.

M&A Advisory, Strategic Advisory

In October 2015 BMP Media Holdings LLC, Brant Publications Inc and affiliates acquired 60.56% ownership interest in Artnews S.A. (Warsaw Stock Exchange: ATN) for for PLN 65,200,000 paid in combination of assets and cash, including transfer of 100% ownership interest in Art in America, The Modern and The Magazine Antique to Artnews S.A. and assigning license to publish Interview magazine in Poland, Greece and Turkey to Artnews S.A.

Acquisition was arranged by Skate Capital Corp.

M&A Advisory, Strategic Advisory

Warsaw Stock Exchange listed international art media firm with operating headquarters in New York, ARTnews S.A. is the product of consolidation of a number of international art media properties by Warsaw listed Abbey House Group S.A., now ARTnews S.A.

In May 2014 Skate Capital has advised on creation of ARTnews S.A. with PLN 63 million of market capitalization at inception.

Flagship Principal Investment, Sale to a Strategic Buyer

Skate Capital invested in Skate’s LLC and over time turned it into the world’s leading art investment research and strategic advisory firm. In 2013 Skate’s LLC introduced an online art business education product and now remains the market leader in the field.

Skate Capital has sold ownership interest in Skate’s LLC to various parties in 2009-2010 including Brant Publications (publishers of Art in America and Interview), but by September 2013 has consolidated 100% ownership interest in Skate’s LLC.

In February 2014 Skate Capital has sold 100% of Skate's LLC to a strategic buyer.

Advisory on IPO Transaction and Corporate Governance

Skate Capital advised the leading Russian real estate development and construction company LSR Group on the IPO transaction (advisory to the principal shareholder) and corporate governance.  LSR Group was listed on the London Stock Exchange in November 2007 achieving $6.8bn market capitalisation at IPO price and becoming the second largest listed real estate group in Eastern Europe and the largest listed building materials firm in the European emerging markets at that time.

Private Placement and Advisory

Skate Capital advised the leading Russian car dealership company Nezavisimost Group on a series of equity financing and joint venture transactions (strategic advisory to the principal shareholders).

Turnaround of a Regional Art Fair

In 2011 Skate Capital had setup a special purpose vehicle in Austria to acquire and operate Viennafair, a regional art fair owned by Reed Exhibitions. By that time Viennafair had gone through 7 editions, which attracted merely 12,000 visitors a year. The fair was a striking mismatch in terms of quality and importance to the otherwise internationally renowned and recognized Vienna art scene and institutions.

Skate Capital had replaced the management team of Viennafair, bringing two new young artistic directors from Eastern Europe and recruiting Dutch and Austrian executives to run the commercial and business side of the art fair. Skate Capital brought a group of Austrian collectors and strategic partners as minority shareholders in Viennafair, and also raised money from a Russian ultra-high net worth individual to finance rebranding and international marketing of the fair, with the Viennafair: The New Contemporary re-launched and re-positioned in September 2012.

By October 2013 Viennafair transformed into one of the most important European contemporary art fairs, with its visitors count reaching 23,000 and its official blog and other media resources becoming very popular among the art loving public.

Skate Capital completed its exit from the Viennafair investment in the fall of 2013 by selling its entire ownership interest to the Russian investor.

Activist Investment and Timely Exit

In May 2012, Skate Capital advised its asset management client, Luxembourg based Redline Capital Management S.A. to make its debut investment in Germany listed artnet.com AG (market cap: EUR 11.71m). At that time, artnet was the incumbent global market leader in art market data and online art trading.

Redline acquired slightly below 10% of artnet.com AG.. Following mandatory disclosure of this investment, Redline made clear its intentions to assist existing artnet.com AG management in developing and financing of the business strategy aimed at preserving artnet.com AG’s leadership position in art media and commerce space that was being increasingly challenged at that time. artnet.com AG founder and largest shareholder, Mr. Neuendorf had responded by resigning from the executive board, shutting down some loss making operations and declaring his lack of intention to enter strategic discussions with minority shareholders. He eventually moved on to propose a so-called ‘poison pill’ to artnet.com AG annual shareholder meeting on August, 2012 that if accepted would have allowed Mr. Neuendorf to secure control over the company while remaining just a 26% shareholder and blocking participation of other minority shareholders in corporate governance of artnet.com. Redline countered by blocking poison pills at the shareholders meeting and launched a tender offer to acquire artnet.com at German stock exchange proposing €6.40 per share or approximately 45% premium to the market price of artnet.com AG shares at that time.

Mr. Neuendorf has successfully defended artnet.com AG from the takeover in October 2012. Skate Capital has arranged for Redline the profitable exit from artnet equity investment throughout 2012-2013 by selling artnet.com AG shares to strategic investors in the US and Poland. By October 2013 artnet.com AG share price dipped below €2 per share and the firm has lost its leadership position in both market information and online art trading space.

Buy Side M&A Advisory, Strategic Advisory to a New Owner

In 2013 Skate Capital advised an unnamed investor to acquire control over Umberto Allemandi Limited. The London based media group’s primary assets are The Art Newspaper English language edition, as well as deals with various publishers around the world enabling them to publish local language newspapers under The Art Newspaper brand in countries like China, Russia and France.

Skate Capital remains a strategic adviser to the new owner of Umberto Allemandi Limited.

Investment in Special Situation

In April 2013 Skate Capital advised its asset management client, Luxembourg based Redline Capital Management S.A., to build a significant minority equity stake in the Portuguese listed telecom and media company Zon Multimedia, with an objective to benefit from an expected merger between ZON and Optimus and restructuring of the consolidated operation.

The consolidated group now called Zon Optimus SGPS SA (market cap: EUR 2.67bn) has been re-launched on October 1, 2013. In October of the same year Redline exited the entire position producing a 33% return on the investment.

Growth Equity Investment

In January 2013 Skate Capital advised its asset management client, Luxembourg based Redline Capital Management S.A. to build a significant minority equity stake in the Canada based US listed digital entertainment exhibition and distribution company IMAX (market cap: CAD 2.05bn). The objective was to benefit from an expected increased adoption of IMAX format blockbuster movie releases by production studios and the anticipated growth of international distribution network of IMAX theaters.

IMAX turned out to be the largest investment for Redline in 2013 and generated 25% return over 2013 for the Fund as of October 30, 2013.

Private Placement of Equity and Bonds

Skate Capital advised Warsaw based art auction and lifestyle media company Abbey House Group S.A. (market cap: PLN 42.74m) on the private placement of its shares to an international investment fund (block trade) and selected equity investments by Abbey House Group managed art fund into a number of listed art industry companies.

Also Skate Capital was active in placing corporate bonds of Abbey House Group S.A. rising PLN 31.41m since 2011.

Growth Equity Investment

In February 2013 Skate Capital advised its asset management client, Luxembourg based Redline Capital Management S.A. to build a significant minority equity stake in the Danish listed building materials group H+H International A/S (market cap: DKK 457mn), with an objective to benefit from the anticipated strengthening of the company’s position in the European construction supplies market.

In December of the same year Redline exited the entire position producing a 21% return on the investment.

Capital Increase

In May 2013 Skate Capital led the investment syndicate to underwrite the capital increase of Germany's media firm _wige MEDIA AG, Cologne. Shares of _wige MEDIA AG are listed in the General Standard segment of the Frankfurt Stock Exchange (market cap: EUR 18mn).

With a clear focus on moving images, wige offers a broad spectrum of media services, creative advisory as well as production and marketing services. The company attends to well-known clients in the automotive, sports, consumer goods and entertainment industries.

Private Placement

In December 2013 Skate Capital made a minority equity investment in the U.S. online art auction platform Paddle8 Inc.

Since its founding in 2011, Paddle8 has refined its business model to become a niche online marketplace for art and collectibles, focusing exclusively on online auctions. Paddle8 presents two types of sales: curated auctions of art and collectibles under $100,000, and benefit auctions (partnering with over 150 non-profit organizations worldwide, from the Royal Academy to Los Angeles County Museum of Art).

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Guidance Report

Lighthouse Guidance Report is a fortnightly newsletter with our trading ideas in the European micro-cap space. Subscribe to Lighthouse Guidance Report or Contact Us to introduce your company to our attention.

Press Release -- Lighthouse Capital Completes Restructuring of Highlight Ventures Corp; Makes a Strategic Investment into Kuuluu Interactive Entertainment AG

More

Press Release -- Lighthouse Capital Increases Portfolio Allocation to Sports & Entertainment, Backs Highlight Finance Corp

More

Press Release -- Lighthouse Capital Exits Equity Investment in Highlight Event & Entertainment AG

More

Issue # 007 -- Affecto is Our New Bet on the European Big Data Industry

More

Press Release -- Lighthouse Capital Adds Focus on Commercial Applications of Artificial Intelligence, Virtual and Augmented Reality Technologies

More

Issue # 006 -- New King of Cool
Highlight Event & Entertainment AG

More

Issue # 005 -- The Rite Of Spring
Business of Classical Music Edition

More

Press Release -- Lighthouse Capital Completes First Exit
New Investment Theme To Be Presented on March 29

More

Issue # 004 -- The Snowdrops Edition
Ecommerce Alliance AG in Germany and Expert System SpA in Italy

More

Issue # 003 -- Fashion Industry's E-Race
Why We Bet on Boohoo.com PLC // Takeaways from LVMH Yesterday's Results // Big Six of High Fashion in Digital Space

More

Issue # 002 -- EU Footwear Edition
While Tod's Ruling Family is Cashing Out, CCC Makes the Digital Bet

More

Issue # 001 -- Polish Media Edition
"Wprost" Payback Time?

More

Issue # 001 -- Polish Media Edition
"Wprost" Payback Time?

Polish listed media industry universe includes 14 companies traded at the Warsaw Stock Exchange. Half of them are loss making, and only one makes it to the major local stock index (WIG-30) and is responsible for about 85% of the total market cap of Polish media companies. The combined market capitalization of 14 listed Polish media firms is PLN 16.1 billion (€3.7 billion) as of January 13, 2016.

The recent government change in Poland has been followed by a set of controversial moves aimed at strengthening government’s supervision of the media industry in Poland. Lighthouse Capital has produced this report to look at the major winners and losers from the new media regulation policy in Poland.


To download the full report and to receive all future reports, please subscribe to Lighthouse Guidance Report newsletter.

 

Issue # 002 -- EU Footwear Edition
While Tod's Ruling Family is Cashing Out, CCC Makes the Digital Bet

The rise of Tod’s, the Italian fashion goods manufacturer, was synonymous to the époque of successful repositioning of Italian footwear industry over the recent decades, which countered loss of competitiveness to Asia (due to labor costs and proximity to what is now the world’s largest market in terms of number of shoe pairs sold) by focusing on quality, moving upmarket and building the powerful, global, luxury marketing machine. This époque is over. Facing the perfect storm of global economic conditions (including the meltdown of key export markets for Italian high end shoes such as Russia and Middle East), digital disruption and loss of investor confidence in Italian footwear benchmarks (Prada now traded below its IPO price of 5 years ago; Tod’s recent acquisition of Roger Vivier essentially being the cash out for the Tod’s ruling family, further explained in this report), we are in for further change in the global footwear market – in that context Lighthouse Capital offers new bets on EU footwear industry. Our favorites are: a largely unknown Polish maverick CCC and the new start-ups in custom & private label, high-end shoe manufacturing business scattered across the Italian Shoe Valley. For the purpose of this report we are avoiding athletic footwear and German blue chips like Adidas and Puma, as this is a separate and bigger story altogether.

The Italian footwear industry can no longer pretend it is invincible, and for those who doubt the boldness of our statement, we suggest to look at the Italian footwear titans’ market capitalization in the context of Zalando – Tod’s €2.1 billion and Prada’s €6.3 billion versus Zalando’s €7.4 billion as of January 18, 2016. Tod’s acquisition of Roger Vivier while having a business merit is the faux-pas that only dents further investors’ confidence in Italian corporate governance style (see for more details below).


To download the full report and to receive all future reports, please subscribe to Lighthouse Guidance Report newsletter.

 

Issue # 003 -- Fashion Industry's E-Race
Why We Bet on Boohoo.com PLC // Takeaways from LVMH Yesterday's Results // Big Six of High Fashion in Digital Space

Last evening (Feb 2) LVMH published its 2015 results, 17 days ahead of its arch-rival Kering. Lighthouse Capital adds the key data points provided by LVMH 2015 performance to its overall scorecard of fashion brands’ recent performance to look into the digital side of the fashion business.

In short, we like how the world’s major fashion companies caught up with the first-mover, e-commerce and lead generation providers in the digital space. Almost every major global fashion brand is now as strong or even stronger in digital reach than any specialized fashion & clothing e-commerce platform (see Exhibit 1 for Facebook data – for comparison, each of digital fashion e-tailers including Netaporter and Zalando have less than 4 million Facebook users; eBay has slightly above 8 million and Amazon over 26 million, however both eBay and Amazon fashion consuming audience is relatively insignificant to their overall audience numbers). The reported online sales ratio of fashion houses might seem low (say, 7% at Burberry), but the impact from their digital presence and marketing is far more significant, contributing to over one third of purchases for the under-40 years of age consumers.

The tectonic changes in fashion’s economic food chain triggered by the digital world are almost done – mainstream fashion media got cannibalized by celebrities, bloggers and other influencers, successful e-commerce platforms keep morphing into content to contextualize and drive the sales, and established fashion brands adopted new standard for digital marketing aimed to access consumers across social networks and bloggers and drive them to their stores. Chanel, Louis Vuitton and Dior might not be remotely as big on Instagram (9.7, 9.2, and 8.4 million followers respectively) as Kim Kardashian or Christiano Ronaldo (59.1 and 46.8 million), but their following is powerful enough compared to digital e-tailers like Zalando, Amazon and Ebay each of which has less than 0.5 million Instagram followers and are never the source of inspiration for any fashion purchase. Each of three brands mentioned above not only beat or are equal to Vogue’s Instagram base of 8.5m followers, but also each is double the size of Vogue on Facebook (16, 18 and 15 million Facebook fans for Chanel, Louis Vuitton and Christian Dior versus just 7 million for Vogue).

So the real challenge for the fashion brands’ digital strategy now is not so much to find its customers but to keep converting them into sales (and upselling). This is a bigger challenge than it seems since the consumers’ loyalty to brands is diminishing with accelerating speed. According to the fashion consumption habits report by Transparency Market Research “in the US, 75% of the consumers state that they easily switch between brands, and for the rest of the world this rate amounts to 60%”.

Call it fast fashion, betting on right celebrities, or simply being clever with adjusting to the ever changing consumer tastes, the trick of modern fashion trade is quickly putting in sync the digital conversion data with the new product development, to be able to churn out more en-vogue product to where the digital audience funnel converts into purchases best.

Lighthouse Capital favors those fashion companies that are capable of doing this best, with Nike Inc being our role model and London Aim-listed Boohoo.com Plc being our absolute favorite in the EU investable universe.

We bet that one of the world’s major fashion houses will launch a tender offer to acquire Boohoo.com Plc this year.


To download the full report and to receive all future reports, please subscribe to Lighthouse Guidance Report newsletter.

 

Issue # 004 -- The Snowdrops Edition
Ecommerce Alliance AG in Germany and Expert System SpA in Italy

Lighthouse Capital Sp. z o.o. maintains an active proprietary trading position and made the first two investments in February – we established trading limits and have partially used them for German e-commerce company Ecommerce Alliance AG and for Italian big data player Expert System.

Here is why we decided to back those two “snowdrops” we deem great small-cap companies, which are barely seen and generally misunderstood by the capital markets today.


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Lighthouse Capital Leads Seed Investment Round to Create The Native

New York -- March 1, 2016, -- An international investor syndicate led by Lighthouse Capital, the Warsaw and Lisbon based buyout firm, has completed Seed Round investment into The Native, the digital content production and semantic web marketing firm headquartered in New York.


The Native has been created on the back of Art2Score Inc., a two-year-old, New York-based technology company established and run by Baruch Goldstein and Milla Bakhireva, the data scientists with an extensive track record in developing various applications for big data technology, including leading research team in semantic web based marketing applications.


Following this seed investment round, The Native will add a digital content production base in Warsaw, Poland, establish sales and marketing operations in the US and Europe, and will focus its digital content production and semantic web marketing capabilities on servicing the global luxury goods industry.


“World’s luxury industry companies have a great story to tell to their existing and prospective customers, but they often struggle to get their message across to younger generation of consumers and are overspending on “old school” marketing channels underestimating the potential of content-based digital marketing to millennial and other target audiences”, commented Izabela Depczyk, the founding partner of Lighthouse Capital who is to become the Chief Executive Officer of The Native with immediate effect. “The Native aims to offer the highest possible return on marketing dollar spent by our luxury industry customers by integrating content production and digital marketing into tech-savvy and content-rich story telling marketing campaigns”, added Ms. Depczyk.


The Native’s own digital properties launch on April 12, 2016 and the first client campaign is scheduled to be completed by May, with a strong roster of clients mostly from fashion and luxury e-commerce already signed up by The Native at this stage.


The seed round for The Native was lead by Lighthouse Capital, with other investors including Skate Capital Corp (the specialist art industry investment firm) and a number of individual investors. Lighthouse Capital other existing investments include German e-commerce platform E-Commerce Alliance AG and Italian technology company Expert System SpA.


For additional information or / and to request The Native corporate presentation please email office@lighthousecapital.pl

Lighthouse Capital Completes First Exit
New Investment Theme To Be Presented on March 29

March 21, 2016, Warsaw -- Lighthouse Capital, Warsaw and Lisbon based investment firm established in December 2015, made its first exit. The company has sold an equity stake of undisclosed size (and below mandatory reporting threshold) in Italy-listed big data and software company Expert System SpA achieving 8.1% return over approximately three weeks or over 100% annualized return on this investment. This realized investment return has significantly outperformed all applicable indices for the same period, including MIB Index and FT World Information Technology Index.

Expert System SpA investment was made as Lighthouse proprietary trading position, with such investments always made by Lighthouse with accompanying automatic chain of limit sell orders to allow for harvesting speculative returns. Built at a weighted average cost of €1.952 per share in second half of February, the position had been sold at €2.11 last week.

“Expert System SpA is an outstanding Italian technology company with a very strong growth potential -- we learned a lot from researching this business and continue to follow it closely”, commented Izabela Depczyk, co-founding partner of Lighthouse Capital and CEO of The Native, the Lighthouse’s portfolio company specialized on digital content production and semantic web marketing for the world’s luxury and lifestyle companies. “We maintain an open investment limit for Expert System SpA and might be further investing in the company or / and its affiliates in the future should an attractively priced opportunity arises”.

The exit illustrates the rewards from research-heavy, hands-on European small caps investment strategy practiced by Lighthouse Capital in parallel with the focus on a very limited number of buyout transactions. The next research report – the “Rite of Spring: The Business of Classical Music Edition” – will be published on Tuesday, March 29.


For more information or / and more names to our distribution list, please email to office@lighthousecapital.pl.

 

Issue # 005 -- The Rite Of Spring
Business of Classical Music Edition

The business of classical music is poised for disruption and explosive growth. Following the footsteps of the art business that opened up to a younger, more global generation of consumers in the late 1990s and enjoyed its boom in the recent decade, the $12bn (in annual sales) classical music business is finally embracing technological change, internationalization of its listener base and exploring new formats, all to make classical music relevant to the millennial consumer. Just as the generation of Damien Hirst, Jeff Koons and Takashi Murakami brought mass-market appeal of the contemporary art scene 15-20 years ago, classical music talents like Anna Netrebko, Lang Lang and David Garrett marked the beginning of growing popularity of classical music amongst general interest listeners.

With Salzburg and Bayreuth festivals already playing the role for the global classical music trade as TEFAF and Art Basel do for the art trade, with rare musical instruments (specifically violins) commanding both Picasso-like prices and growth-equity-like returns, and with an expanding population of classical-music players due to the wide adoption of classical music within the Asian educational curricula, it is just a matter of time before classical music becomes the next hot topic.

The Lighthouse Guidance Report discusses a few investment themes as our team prepares for our first investment in the classical music space to be likely announced this Spring. To learn more please contact us at sergey@lighthousecapital.pl.


To download the full report and to receive all future reports, please subscribe to Lighthouse Guidance Report newsletter.

 

Issue # 006 -- New King of Cool
Highlight Event & Entertainment AG

Swiss media & entertainment entrepreneur Bernhard Burgener is the New King of Cool – following his stellar track record in European sports and music industries for recent decades, he is up to something new and exciting. Details are still patchy, but the overall vision is bold and clear: he recently bought control of Swiss-listed Highlight Event & Entertainment AG (HLEE) to transform it into Netflix for global entertainment with proprietary digital life technology on top.

Lighthouse Capital invested in HLEE and now backs the stock -- to find out why, download this report.


To download the full report and to receive all future reports, please subscribe to Lighthouse Guidance Report newsletter.

 

Lighthouse Capital Adds Focus on Commercial Applications of Artificial Intelligence, Virtual and Augmented Reality Technologies

Lighthouse Capital Exits All EU Investments Delivering 74% Average Return

August 9, 2016, San Francisco -- Lighthouse Capital, the firm focused on the buyout deals and special situation investments in the European small cap space, has completed two more exits. The company also made the decision to supplement its investment strategy (originally focused on media, entertainment, luxury and e-commerce) with the growth equity practice centered on commercial applications of artificial intelligence, and virtual and augmented reality technologies. Lighthouse Capital will remain a hands-on investor, taking board participation in its portfolio companies, helping to introduce them to new clients, markets and distribution channels around the world, particularly in Europe.

This year Lighthouse Capital has completed exits from all of its EU-based investments including Milano-listed artificial intelligence firm Expert System SpA and most recently Frankfurt-listed Ecommerce Alliance AG (see chart below for Ecommerce Alliance stock performance versus German DAX Index during the Lighthouse’s investment cycle). Lighthouse Capital delivered a weighted average 74% return to its investors through the three short-term investments it made in the EU this year.



Lighthouse Capital expansion to the US follows the successful and active investments made into The Native Media Inc. (based in New York) and Highlight Event & Entertainment AG (which invests in the US among other markets).

Lighthouse Capital invested in the Swiss-listed Highlight Event & Entertainment AG in early May 2016 and so far delivered a 15.6% unrealized return (in Swiss Francs) over the three-month investment cycle. Majority-owned by a well established Swiss media entrepreneur Mr. Bernhard Burgener, Highlight Event & Entertainment AG invests in disruptive media technologies and services around the world alongside operating some of the most popular European music events.

In July of this year, Lighthouse Capital led the Series A equity financing for The Native Media Inc. bringing two new value-adding institutional investors into the company’s cap table and providing The Native Media with adequate resources to finance further expansion.

“Our focus is on servicing our advertisers with producing content marketing campaigns built around the use of artificial intelligence, virtual and augmented reality technologies sourced by The Native from the tech leaders in this space,” commented Izabela Depczyk, co-founder of Lighthouse Capital and CEO of The Native Media Inc.

As part of the new expansion, Lighthouse Capital will open an office in San Francisco in September 2016 and from there will manage its investment practice focused on the commercial applications of artificial intelligence, virtual and augmented reality technologies.


For more information or / and more names to our distribution list, please email to office@lighthousecapital.pl.

 

Issue # 007 -- Affecto is Our New Bet on the European Big Data Industry

Lighthouse Capital invests at the crossroads of our core competences in the luxury, e-commerce, media and entertainment industries and growth opportunities in artificial intelligence and virtual & augmented reality technologies.

This month we made a bet on the Helsinki (Finland) listed Affecto OYJ. Priced at €2.8 per share, Affecto stock is currently traded at 0.6x sales, 12x earnings and carries a 5.7% dividend yield. Not surprisingly, the attractive valuation is there for a reason – Affecto is caught in the middle of a transition from (a declining) systems integration and IT services business model to a new strategy that the company is ambiguous about (as the Affecto management puts it: “The company is in the process of updating its strategy. Until the strategy process is completed, the company does not provide long term financial targets”). That said, data analytics, machine learning and more use of virtual reality technology are clearly in the focus of Affecto’s strategy going forward[1]. We like this, although most of the mainstream public equity investors want to see more clarity.


To download the full report and to receive all future reports, please subscribe to Lighthouse Guidance Report newsletter.


For any further information about Affecto or / and our overall investment strategy in artificial intelligence, virtual & artificial reality space, please contact office@lighthousecapital.pl.

 

Lighthouse Capital Exits Equity Investment in Highlight Event & Entertainment AG

October 6, 2016, Zurich -- Lighthouse Capital has completed the 4th exit this year by selling down its entire ownership interest in the Swiss listed Highlight Event & Entertainment AG (“HLEE”). The five-month long trading strategy was centered on buying up HLEE stock earlier this year as the company was in the middle of restructuring and repositioning of its equity story, with Lighthouse Capital actively backing the leadership of HLEE throughout the restructuring process.

The investment in HLEE stock resulted in an 18.8% return in CHF terms or about 45% annualized return thus confirming the successful small cap investment strategy practiced by Lighthouse Capital based on taking concentrated and actively managed bets on listed stocks in well established European small cap companies seeking for internalization and modernization of their business model.

Four successful trades completed by Lighthouse Capital this year in Italy, Germany and Switzerland resulted in weighted average Euro adjusted annualized return of slightly under 24%.


To learn more about how to invest with Lighthouse Capital please email us at sergey@lighthousecapital.pl.

 

Lighthouse Capital Increases Portfolio Allocation to Sports & Entertainment, Backs Highlight Finance Corp

October 19, 2016, Zurich -- Lighthouse Capital, the investment firm focused on applications of new technologies and content marketing in the media, luxury and entertainment space, has re-allocated its investment portfolio to sports & entertainment assets following four successful exits from media, technology and e-commerce firms this year so far.

On September 30, 2016 Lighthouse Capital acquired five venture capital assets in the entertainment & media industries from the Swiss listed Highlight Event & Entertainment AG. The acquisition was done through a Delaware based special purpose vehicle Highlight Ventures Corp, for an undisclosed amount. The transaction is structured in such a way that while Lighthouse Capital assumed full ownership and management responsibilities for Highlight Ventures Corp, the seller (Highlight Event & Entertainment AG) can benefit from any significant upside to be achieved by Lighthouse Capital in managing this portfolio. Highlight Ventures Corp will be renamed into Lighthouse Ventures as of November 1, 2016.

To provide our investors with further access to a high quality deal flow, Lighthouse Capital backed the new Zurich based investment firm Highlight Finance Corp (HFC) which will focus on investments into the global sports & entertainment assets. Other backers of HFC include the Swiss listed media group Highlight Event & Entertainment AG, private equity firm (Alternative)2 Holding AG, the specialist film financing company Spark Productions AG, and Zurich and London based sports financing company Ecotonian AG.

“Highlight Finance Corp will leverage the experience and access of its backers to deploy our investors’ capital into the best entertainment & celebrities IP and the fast growing technologies, brands and content businesses in the sports industry," commented Mr. Sergey Skaterschikov, the cofounder of Lighthouse Capital who will also serve as the Managing Director of Highlight Finance Corp. "We want to open up the ability for our investors to participate in the most sought after sports, media & entertainment investment deals that transform the way sports & entertainment is produced, distributed and consumed around the world,” Mr. Skaterschikov added.

HFC is a partnership with no majority owner, and will manage investors’ capital through a variety of capital structures, mostly accepting investors on a deal-by-deal basis and taking management and board roles in its portfolio companies. HFC will be an active, value adding, growth-focused investor supporting global celebrities and sport & entertainment brands with capital, management skills and ability to internationalize and monetize their existing business, intellectual property and brand value.


To learn more about how to invest with Lighthouse Capital please email us at office@lighthousecapital.pl.

 

Lighthouse Capital Completes Restructuring of Highlight Ventures Corp; Makes a Strategic Investment into Kuuluu Interactive Entertainment AG

November 3, 2016, Zurich -- Lighthouse Capital, the investment firm focused on transforming luxury and entertainment industries with applications of new technologies and digital marketing practices, has completed the restructuring of Highlight Ventures Corp.

Highlight Ventures Corp has been owned by Lighthouse Capital since September 2016, and was used to acquire various venture capital assets from a Swiss-listed event marketing group Highlight Event & Entertainment AG on September 30, 2016‎. On November 1, 2016 Lighthouse Capital agreed to sell 100% of Highlight Ventures Corp. to the undisclosed specialist investor firm (the unrelated party) for an undisclosed amount.

Following completion of the restructuring, Lighthouse Capital consolidated a 100% ownership interest in the Swiss company Kuuluu Interactive Entertainment AG from Highlight Ventures Corp‎ and the original founders of Kuuluu, with an objective to transform Kuuluu into a digital audience development and monetization company for global brands and celebrities. Best known for the widely successful Linkin Park social game, Kuuluu has a strong portfolio of other celebrity-endorsed games in production.

“We aim to power Kuuluu game development capabilities with artificial intelligence and digital marketing applications, specifically chatbot and semantic web technologies currently commercialized through The Native Media Inc, one of our portfolio companies,” commented Izabela Depczyk, the co-founder of Lighthouse Capital and CEO of The Native Media Inc.

“Kuuluu will be able to serve its existing and future roster of celebrities with a unique roster of high tech services, thus opening up new monetization channels,” added Ms. Depczyk.

Kuuluu will re-launch and introduce its new management team and investors in December, 2016.


To learn more about how to invest with Lighthouse Capital please email us at office@lighthousecapital.pl.

 

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Investing with Lighthouse

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Lighthouse Portfolio

Lighthouse Capital active investments

company listing ticker industry invested since
Not Listed Private
Digital content marketing company focused on the use of video content, virtual reality and artificial intelligence in designing and producing the native clips and customer service features for advertising clients

March ‘16
Helsinki AFE1V
The Company provides information management and business intelligence (BI), as well as operational solutions for improving and simplifying processes at customer organizations, and geographic information services
 
August ‘16
Not Listed Private
Investment firm (global entertainment industry)
 
September ‘16


Lisbon SLBEN
Sports & media
 
October ‘16
Not Listed Private
Designing, developing and operating digital consumer monetization channels for brands & celebrities with a specific focus on native advertising, in-game / social / referral revenue streams and sales of collectibles and merchandise
 
November ‘16

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To introduce your business to Lighthouse Capital, please contact izabela@lighthousecapital.pl

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