The company at a glance
Morningside Hill Capital Management is privately owned investment firm, currently based in Sofia, Bulgaria. The company has interests in venture capital, private equity, hedge funds and mutual funds. Across its various strategies, Morningside Hill employs the value investing approach, which seeks to accrue long-term investor value by utilizing rigorous in-depth fundamental research and focusing on investment factors which can be measured, quantified and monitored.
A disciplined institutional approach and a rigorous best practices implementation drive our investment edge. Our due diligence is enhanced by the knowledge and insights of an extensive network of professionals, including management teams, industry specialists, fellow investors, and others who may be familiar with a given business. A culture of learning, efficiency and constant improvement permeates our firm.
Hedge funds and mutual funds
Investors in the hedge funds and mutual funds please click here. If you would like to receive more information on these products please contact us at info@morningsidehill.com
Morningside hill venture capital fund
In November 2019 Morningside Hill launched its latest venture capital fund, which is focused on providing growth capital to Bulgarian startup companies. The fund has EUR 38.5 million under management to be invested in equity (or equivalent) minority positions in 25 to 30 companies. The VC fund comprises public funds of EUR 33.3 million provided by the Fund Manager of Financial Instruments in Bulgaria EAD under the operational programme “Innovation and Competitiveness” co-financed by the European Structural and Investment Funds for the 2014-2020 programming period. The typical investment holding period is 5-10 years, while exit opportunities will be evaluated ad hoc.
Investment Criteria
The strategy is sector agnostic with a focus on companies that satisfy at least one of the following conditions:
The company generates at least 50% of its revenue in Bulgaria;
At least 50% of the company’s staff is based in Bulgaria;
At least 50% of the company’s assets are held in a Bulgarian subsidiary;
Morningside Hill seeks to invest in startups with the following characteristics:
The startup is in an early stage of development (post-seed);
The company should at minimum have created a viable product or service that has achieved an adequate level of market validation;
The company has already generated its first revenues or is on the verge of doing so;
An exceptional management team with an idea that addresses specific market needs;
A product or service with a significant total addressable market;
An internationally competitive product or service or one that showcases a defensible local advantage;
Realistic growth runway and expansion potential;
A measurable moat or competitive advantage;
Solid cost control and manageable cash burn rate;
An innovative or industry disruptive approach;
Transparency in operations, financials and reporting;
A viable exit strategy;
An adequate valuation.
The team
Pavel Velkov (Partner) has over 15 years of experience in the field of finance and investments. Prior to launching Morningside Hill in 2014, Mr. Velkov has garnered a wide-ranging investment proficiency in North America, Europe, and Africa. Mr. Velkov has held various investment positions at funds with strategies covering publicly traded equities, corporate and government bonds, venture capital, private equity, distressed and special situations and convertible arbitrage. Mr. Velkov holds an M.B.A. from Columbia Business School, a B.A. from the American University in Bulgaria and is a CFA charterholder.
Delyan Ganev’s (Partner) experience spans over a decade between Europe and the US ranging from investment management and SME financing to risk management. His previous work extends to both private equity investing as well as lending and structuring of transactions in local and international markets alike. Mr. Ganev received a Master of Finance degree from MIT Sloan School of Management and a B.A. from the American University in Bulgaria.
Ekaterina Velkova (Partner) has accumulated a distinctive experience in both investments and fundraising for investment funds and non-governmental organizations, where she has held various consulting and management positions on three continents. Ms. Velkova holds an M.A. degree from Columbia University School of International and Public Affairs and a B.A. from the American University in Bulgaria.
Todor Mutafchiyski (Partner), a civil engineer by education, has accumulated over two decades of C-level industry experience in construction and civil engineering. As a professional and angel investor, Mr. Mutafchiyski has helped numerous startups find a path to rapid growth and has amassed a wide network of industry professionals on two continents.
INVESTMENT POTFOLIO
If you would like to explore the investment portfolio of the VC fund, please click here.
Contact Form
Contacts
15 Aksakov Street, Sofia 1000
info@morningsidehill.com
Regulatory information and documentation
If you would like to access the regulatory information, please click here.
NO CONSIDERATION OF ADVERSE IMPACTS OFINVESTMENT DECISIONS ON SUSTAINABILITY FACTORS
The declaration by Morningside Hill that the AIFM does not consider any adverse impacts of its investment decisions on sustainability factors is published here.
