Investing in Human Capital: A Lecture by Alexander Kleshchyov
On June 3, the department of finance hosted a lecture titled “Investing in Human Capital,” delivered by Alexander Kleshchyov, a member of the Board of Directors at LMS Investment Company.
Alexander began by explaining why traditional pension systems are becoming ineffective: demographic challenges and economic instability demand new models for supporting future professionals. Against this backdrop, investing in education and personal development has emerged as a crucial tool.
Also the lector laid out the core principles of human capital theory, drawing on the work of Gary Becker, and shared his experience founding Russia’s first dedicated fund for financing talented individuals. Attendees learned about the stages and obstacles involved in launching such a fund – from building a team to collaborating with investors and educational institutions.
Next, the discussion shifted to practical financing mechanisms: the advantages and risks of debt versus equity investments, and the role of venture capital in supporting startups and educational initiatives. Special attention was paid to the Income Share Agreement (ISA) model, in which an investor covers educational or project costs upfront and then receives a percentage of future income. Alexander provided examples of international and Russian platforms where ISA is already in use and recounted real-life student success stories made possible by these agreements.
Students actively posed questions: how to find funding for their studies, where to look for investors, what terms funds typically offer, and how risks are shared between the student and the investor. The conversation also touched on the shifting economic dynamics between generations – many noted that today’s digitally skilled young professionals have more opportunities, and that funding mechanisms like ISA give them a chance to bring their ideas to life more quickly.
In closing, participants agreed that the lecture not only clarified the instruments for investing in human capital but also inspired them to take action: to seek out their own development paths and leverage new financial models. We extend our gratitude to Alexander Kleshchyov for his in-depth presentation, practical advice, and willingness to answer every question. Your insights have inspired students to view education and career development as genuine investment opportunities.