Zak Mir talks to Alexander Selegenev, Executive Director, TMT Investments, after the venture capital company investing in high-growth technology companies, announced that it will today commence an on-market share buyback programme for an aggregate consideration of up to US$2,000,000.

The Company’s board of directors believe that the current share price trades at a significant discount to the Company’s intrinsic value. The purpose of the Programme is therefore to seek to take advantage of this discount to enhance Net Asset Value (NAV) per share, reduce the Company’s share capital, and return value to its shareholders.

Quick snapshot: who TMT is and what they own

TMT is a listed investment company focused on technology, media and telecoms ventures. Founded nearly 15 years ago, the firm has backed more than 100 companies across the US, Western Europe, the UK and Estonia. Its portfolio includes several high-growth names that have achieved large multiples on real exits, and the group reports an IRR since inception of over 14%.

Key portfolio highlights include a material holding in Bolt, several profitable growth companies such as Sandbird, and other scalable businesses that are already generating cash. TMT also holds liquid, publicly traded US stock totalling around US$12 million that can be sold if needed. Despite that mix, the market capitalisation for TMT has been trading well below the value of its assets, at roughly a 60% discount to NAV.

Why the buyback matters

The board’s stated purpose is straightforward: use the buyback to enhance NAV per share, reduce share capital, and return value to shareholders while taking advantage of the discount. Management has framed the decision as both a prudent capital allocation and a signal that they see the shares as undervalued relative to the company’s intrinsic holdings.

Put simply, when a listed vehicle holds large stakes in businesses that are profitable or have credible exit paths, repurchasing shares at steep discounts can be an efficient way to convert latent value into realised shareholder benefit.

Conservative valuation, transaction-first approach

TMT emphasises a conservative, transparent approach to valuing its portfolio. Rather than relying heavily on convenient multiples, the company values most holdings using actual transactions where possible. As of the most recent reporting, only about 15% of the portfolio value was derived from multiples. The rest is grounded in verifiable cash exits or market-based evidence.

This transaction-first method matters for two reasons. First, it reduces the subjectivity that often plagues private asset valuations. Second, it gives buyers and existing shareholders more confidence that the headline NAV is meaningful and not merely an academic number.

Why the London market discounts investment companies

There are several forces pushing listed VC-style investment companies to trade at discounts. A few of the main contributors are:

• Market risk aversion. Volatility and macro uncertainty make investors prefer simple, liquid stories over diversified, private-rich portfolios.
• Focus on the negatives. When you hold dozens of companies, the market tends to fixate on weaker performers instead of the winners.
• Timing uncertainty for exits. Investors price in delays for IPOs or sales, which reduces near-term enthusiasm for NAV-based assets.
• Capital outflows from small caps. Structural flows away from smaller listed companies can suppress demand further.

Those factors help explain why an investment company can be priced well below the sum of its parts, even when its largest holdings are sizable and verifiable.

Portfolio depth and track record

TMT’s historical performance includes high-multiple exits and several successful growth stories. The team leverages decades of operating and investing experience to access deals, support scale-up, and realise value. For investors who cannot source and monitor multiple early-stage opportunities directly, a diversified vehicle like TMT offers scaled exposure with professional oversight.

Examples mentioned by management include exits that delivered 50 times and 23 times the original investment, and a portfolio valuation that exceeds US$200 million. Those realised outcomes are a reminder that venture-style returns remain achievable, albeit uneven across companies.

Why management is buying back shares now

The buyback is both a practical move and a signal. Management believes the current market price significantly understates intrinsic value. Buying stock at a 60% discount can meaningfully increase NAV per remaining share, and it demonstrates the board’s confidence in the portfolio’s prospects.

"You're paying 40p for a pound."

That shorthand captures the essence of the opportunity as the board sees it: purchasing a claim on a dollar of underlying value for substantially less than its stated worth.

How to evaluate this kind of opportunity

When considering an investment in a listed, venture-style vehicle, the following checklist helps frame the decision:

• Valuation basis — Are portfolio values backed by cash exits or observable market prices, or are they largely multiples and estimates?
• Concentration risk — How much of the NAV is tied to a single holding and how comfortably can that position be realised?
• Liquidity profile — How easy would it be to monetise some holdings if capital was required?
• Exit pipeline and timing — Are there credible catalysts, such as planned IPOs or trade sale processes?
• Management track record — Does the team have a history of building companies, achieving exits and allocating capital well?
• Discount to NAV — Is the discount justified by legitimate risks, or does it reflect short-term market sentiment?

Risk and timeframe

Investing through a vehicle like TMT is not a short-term trade. Venture outcomes are irregular and often require patience, typically measured in years rather than months. Catalysts such as IPO announcements can rapidly re-rate a stock, but those events are timing-dependent. The buyback reduces share count and can accelerate per-share NAV accretion, yet it does not remove execution risk across underlying companies.

Final thought

TMT’s share buyback is a clear, pragmatic response to a valuation gap. For investors comfortable with venture-style risk and a longer time horizon, buying into a diversified, transaction-valued portfolio at a substantial discount can be an attractive opportunity. As always, review the underlying holdings, assess the company’s valuation methodology, and consider how the investment fits within your broader portfolio objectives.