C-Quadrat Ampega commits USD 6 million to Formula VC Fund II

CQ Ampega Asset Management Armenia has committed USD 6 million from its CQ Conservative pension fund and USD 90,000 from its CQ Balanced fund to Formula VC Fund II, a venture capital fund investing in early-stage technology companies. Technology is one of the priority sectors of Armenia’s economy. 

Through this investment, long-term pension savings are directed to companies operating in the real economy.

CQ Ampega’s Investment Committee conducted comprehensive due diligence, assessing the fund and its General Partners against a range of criteria. The investment decision was made following a comprehensive risk analysis and compliance review. Factors that influenced the positive decision include:

* The strategy of the fund and the portfolio construction approach, which provides meaningful diversification across the technology sector
* The committee’s assessment of Formula VC Fund I results achieved to date 
* The general partners’ operating experience and their direct, active engagement with portfolio companies
* A clear commitment to continuous improvement, particularly in adopting institutional standards and international best practices
* Direct and consistent communication with both investors and portfolio companies

This investment also strengthens the link between Armenia’s financial and technology sectors, which until now have largely developed in parallel rather than in an interconnected manner.

“This investment is a meaningful diversification for the pension funds - a new source of additional return for pension participants over a long term investment horizon. 

Diversification through alternative investments is consistent with global institutional portfolio allocation practices and follows from our fiduciary duty. Through this fund, around 450,000 citizens whose pension assets are managed by C-Quadrat Ampega gain participation in the strategic industry sector. This marks another important milestone on the path toward achieving the investment objectives we manage on their behalf.

This investment represents approximately 0.3% of assets under management, which is calibrated at the acceptable risk level for pension funds. Here, the scale works both ways, as its also a significant volume of long-term, patient capital for Armenia’s technology sector,” said Arman Vardanyan, CEO of CQ Ampega Asset Management Armenia.

photo © Formula VC

“Back in 2024, by becoming the sole institutional investor in Formula VC’s first fund, C-Quadrat Ampega became a pioneer in pension fund venture investments both in Armenia and across European ecosystems.

Today, we are already making investments through our second fund, Formula VC Fund II. As the largest venture investor in our ecosystem, continued cooperation with C-Quadrat Ampega is very important to us.

We consider this investment strategic for a sector of strategic importance in Armenia. Recent developments around artificial intelligence indicate that Armenia is inevitably becoming a regional hub not only for AI infrastructure, but also as a preferred destination for startups. In this context, we place even greater importance on the participation of the country’s long-term funds - the so-called “long money” in the innovative technology ecosystem,” said Karen Vardanyan, General Partner of Formula VC.