Vitalij Farafonov: Board member Holland & Barrett; Founder, CapGrowth; former COO LetterOne
Photo by F&G Photography
Vitalij, you recently left a very senior executive role as COO and Board member of LetterOne, at the peak of your career. What was the catalyst behind such a bold move?
It was a confluence of things. After 15 years in high-intensity leadership roles, I realised I needed to rebalance. My family, especially my wife and four children, have been unwavering in their support, and I wanted to be more present. At the same time, I also felt a strong pull to explore AI – not from the sidelines, but by going deep. And finally, I wanted to channel my expertise and experience into something I’ve long been passionate about: investing in SMEs. It felt like the right time to step back, reflect, and embrace a new chapter.
Many people talk about AI, but you’ve actually gone back to school at MIT. Why?
I believe AI will redefine business – not just tweak it, but completely reshape it. I didn’t want to just read headlines or attend conferences. At the beginning of the year I enrolled in MIT’s 7-month AI for Senior Executives programme to understand the foundations, mechanics, strategy and ethics behind it. It’s been humbling and energising – and yes, I’m learning a lot about data science and even writing code again!
What’s it like going from boardrooms to coding?
Surreal at first! I hadn’t written a line of code in over 25 years, but what’s remarkable is how AI tools make coding incredibly accessible. It reminded me how empowering it is to build. And now it really feels like anyone can build anything – there are very few moments in history such as this. It’s also helped me bridge the language of technologists with the needs of business leaders – a skill I now see as essential for the next decade.
You’ve launched CapGrowth. What is it?
CapGrowth is a private investment platform that I’ve created together with three partners who share my values and long-term mindset. We invest our own capital into SMEs – not as passive investors, but as thoughtful, aligned partners.
We focus on two big transitions happening in the SME space. First, many baby boomer founders are approaching succession. That’s a hugely emotional and often complex journey. CapGrowth steps in to offer founders a trusted exit route – whether it’s a full exit or a partial one – that respects their legacy. We’re also open to minority investments to help founders unlock growth without giving up control.
The second transition is technological. AI is already reshaping large enterprises, and now it’s coming to SMEs. Those who embrace it smartly will gain a serious edge. That’s where we see opportunity – to back strong businesses with great fundamentals and help them build for the future. Our current focus is on Luxembourg and the UK, and we’ve just launched capgrowth.co.uk, with a Luxembourg site on the way.
What’s your investment philosophy when it comes to SMEs?
We focus on value over hype. We’re looking for well-run businesses with long-term potential. We respect founders and offer flexible investment structures – full acquisitions, partial exits, or even minority stakes to support growth.
We’re not here to flip companies or impose short-term targets. We’re here to preserve what works, improve what can be improved, and help position the business for future success – including how it adapts to AI and other tech shifts. We also make sure there’s strong alignment between us and the people we invest in.
Do you think most boards are ready for AI?
Honestly, no. Too many still see AI as a buzzword or something to be delegated to the IT team. It often gets mentioned alongside innovation or digital transformation — but without real strategy, business purpose, or follow-through. It becomes something to talk about rather than something to act on with real strategy and focus. But AI is different. Its implications are profound and far-reaching. Boards need to move past the hype and engage with clarity, urgency, and ownership. This isn’t optional — it’s existential.
In fact, research from MIT Sloan and BCG, McKinsey, the World Economic Forum, Harvard Business Review, and Stanford consistently shows that board-level engagement is a defining feature of successful AI adopters. Organizations where the board actively steers AI strategy and governance are far more likely to generate real value — and avoid costly missteps.
What role do you see yourself playing on boards going forward?
I don’t plan to serve on more than two to three boards, where I can add real value through a blend of financial acumen, governance experience, and now – increasingly – AI fluency and being the bridge between business strategy and technology. I aim to be the board member who can balance challenge and support, understand risk and help boards navigate the technology landscape with confidence.
Looking back, what leadership lessons stand out from your time at LetterOne and TNK-BP?
Resilience and empathy. Leading through crises – whether geopolitical, financial, or cultural – teaches you that people matter more than anything. Clear frameworks are essential, yes, but also calm, trust, and a willingness to listen deeply, especially through uncertainty.
You’ve been in Luxembourg for over a decade – how has it shaped your professional and personal life?
Immensely. Luxembourg has offered a unique balance: a world-class business environment and a an amazingly diverse community. AmCham, in particular, has been a big part of that – the events, the friendships, the ability to exchange ideas openly. It’s a place that truly values not only ambition but also human connection. Honestly, I think Luxembourg has a story to tell – and I’d love to see a campaign that says it boldly: “Luxembourg works!” For business, for families, for careers, and for quality of life. Because it does.
What industries excite you most in terms of AI disruption?
Healthcare, retail, financial services – all being reinvented by AI. But honestly, it’s not just about sectors and more about use cases: automating repetitive tasks, personalising experiences, predicting demand. The companies that figure this out first will leap ahead.
AmCham is a vibrant and diverse community. What has your experience with it meant to you?
AmCham is more than just a network — it feels like a home away from home. Some of my most valuable friendships and conversations began at AmCham events and gatherings. I really appreciate how you and the team foster meaningful connections among members — across sectors, generations, and backgrounds. AmCham is a true gem within Luxembourg’s ecosystem, and I’m grateful to be part of it.
You’ve worked with leaders across many cultures – how do you build trust in a multicultural setting?
With time and humility. Listening first, speaking last. I’ve led teams with 20+ nationalities, and every culture brings its strengths. When you create space for people to be heard, trust and mutual understanding builds.
If you had one piece of advice for other senior executives thinking about a transition, what would it be?
Listen to the quiet voice — the one that asks, “Is this still right?” It’s easy to get caught up in the momentum of success and the comfort of the familiar. But all leaders have an expiry date — and the best ones move on before they’re moved on. Taking the time to reflect — and then act — can be one of the most powerful steps you’ll ever take.
What’s next for you in the next 12 months?
I’m focused on my current board role at Holland & Barrett — an incredible business that, coincidentally, gave me my first job as a Saturday sales assistant at 17. I’m also completing the MIT AI programme and making a few strategic SME investments through CapGrowth, particularly in Luxembourg and the UK. I’m also working on a start-up AI project which for the time being is confidential and I hope to be able to share details soon.