20 Years of History
Investments, Development & Growth
Viking Investments Group LLC, is a United States global financial advisory and investment firm with more than 20 years of history. We invest in and develop in a cost effective and risk adverse approach, a diversified portfolio of consumer related and IT based companies in The People’s Republic of China, the United States and India. Our focus is on young and entrepreneurial companies, where we assist in the development of their businesses to the point of maturity, building on sustained growth and expansion, guiding them in the process of becoming strong and mature companies.
Our client portfolio companies should have reached $10 million in net profit, 30% growth over the past 2-3 years, and having no more than 30% debt to equity. Exceptions do apply from case to case, but we do not invest in start-up companies. Contact us for details.
Publicly Listed in the United States
We make our investments in our client companies in conjunction with assisting them to become publicly listed companies in the United States. If, during our due diligence, we determine to make an investment, we will provide, either through in-house resources, or by inviting third party investors and / or strategic partners resources to participate in the future development in consideration for equity or debt financing, as the case may be.
US Capital markets – Strongest in the
The United States’ capital markets are the strongest in the world, open to list companies from most jurisdictions. Investors from anywhere can trade the US markets. Pricing is fair, the execution is efficient, and the transparency makes the US markets the most reliable of all markets. The US markets have more foreign companies listed than all other markets combined.
Emerging Growth Markets coupled with the US
We see strong opportunities among the rapidly advancing emerging markets
which contain a new wave of growing companies prepared to capitalize on the tremendous rise of the middle-classes currently transforming these economies. Our preferred model is to couple the
mid-stage American Internet companies with established and proven track record that could feasibly be localized into emerging markets, such as China and India, the two most populous countries in the
world, together with the surging consumer demands . The American Internet / Hi-tech sector is unparalleled across the globe, and the innovative and creative technologies it produces have the ability
to transform the current Internet / Hi-tech scene in emerging markets, which has been unable to spur entrepreneurship and development of the Internet industry. It is our belief that coupling eager
emerging market businesses with cutting-edge American creativity and investments will result in the successful localization of technologies as well as real returns. The rise of middle-class consumers
in these emerging markets will not only assist American Internet / Hi-tech entrants, but also local industries, that have expanding customer-bases with higher amounts of disposable income.
Emerging markets bring not only the opportunity of fast growing consumer bases for their domestic suppliers, but for international companies that establish connections and reputations before competitors reach these markets. Numerous American hi-tech companies have capitalized on the lack of hi-tech innovation and capital for growth available in emerging markets and have gained strong footholds in niche markets, utilizing platforms that have already succeeded in the United States and localizing them to perform well in foreign markets as well.
Typical Micro-Cap companies may have a valuation ratio that is between
30% and 50% discounted from the ratio of a similar Small-Cap company, due to prevailing market assumptions and disparities between coverage and initial liquidity. This in turn leads to historically
greater returns; a study by the University of Chicago School of Business completed in 2009 revealed that Micro-Cap returns have been over 2 times as great as those of Small-Cap companies, 3 times as
great as Mid-Cap companies, and over 10 times as great as returns from Large-Cap companies, in the period between 1925 and 2009. The same study also found that larger market capitalization companies
had significantly higher P/E ratios than smaller capitalization companies, which leads to investors of Micro-Cap companies benefiting both from the increase in revenues as well as the increase in
market multiple ratios of their companies as they grow and become larger-cap companies.
In addition to outperforming the larger-cap companies historically, Micro-Cap stocks have tended to perform better than large-cap stocks in periods following recessions. According to the National Bureau of Economic Statistics, regarding U.S. recessionary periods from 1996 to 2001, Micro-Cap assets classes outperformed large-cap assets classes by 47% in the first year after the official end of the recession and by 25% in the second year.