Julio Utrera of Southeastern Asset Management presented his thesis on Allfunds (Netherlands: ALLFG) at Wide-Moat Investing Summit 2025.
Thesis Summary
Allfunds is a competitively advantaged, founder-operated leader in the global fund distribution market, presenting a compelling value proposition through its asset-light, high cash flow-generating business model. With approximately €1.5 trillion in assets under administration (AUA), Allfunds commands a leading global position, benefitting significantly from strong network effects, high client stickiness, and substantial brand equity. The company boasts virtually 100% renewal rates from both distributors and fund providers, underscoring the reliability and essential nature of its offering.
Despite its robust fundamentals, Allfunds recently traded at a meaningful discount, primarily due to a shareholder overhang stemming from private equity interests seeking exit opportunities. This has created a temporary mispricing, offering investors an attractive entry point. A clear valuation floor was established by a hostile takeover attempt at €8.75 per share in early 2023, significantly above the current trading levels of around €6 per share.
Allfunds is projected to generate €647 million in revenue and €420 million EBITDA in 2025, reflecting an EV/EBITDA multiple of 8.8x and an FCF yield of ~8.1%. Management is highly aligned with minority shareholders, evidenced by consecutive share buybacks initiated since 2023. Given its sustained double-digit value growth and strategic positioning as a misunderstood infrastructure play rather than an asset manager, the stock offers upside potential exceeding 50% from recent trading levels.
While sensitivity to market movements presents some risk, Allfunds continues to diversify its revenue streams, notably through growth in subscription-based and alternative product offerings. Regulatory risks and client concentration concerns are mitigated through proactive contractual strategies, further reinforcing the attractiveness of the investment thesis.
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Latticework 2025 will be held in New York City on October 7th. In fireside chats with audience participation, the summit will explore intelligent investing in a rapidly changing world. Keynote speakers include:
Chris Bloomstran, President of Semper Augustus Investments Group
Tom Gayner, CEO of Markel and Director of The Coca-Cola Company
Saurabh Madaan, Managing Member of Manveen Asset Management
Scott Miller, Founder of Greenhaven Road Capital
Bob Robotti, President and CIO of Robotti & Company Advisors
Tom Russo, Managing Member of Gardner Russo & Quinn
Will Thomson, Managing Partner of Massif Capital
Christopher Tsai, President of Tsai Capital Corporation
Ed Wachenheim III, Chairman of Greenhaven Associates
Disclaimer
Wide-Moat Investing Summit 2025 was held from June 24 through July 9, 2025. The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.
Slides
Let’s watch the presentation and look over the transcript.
