Heliad Equity Partners KGAA (DE:HPBGn) is a DACH-focused investor in the tech, e-commerce and lifestyle sectors. It is managed by Heliad Management GmbH, a company wholly owned by Heliad’s largest shareholder, FinLab (A7A). Stakes in listed tech companies Fintech Group AG (DE:FTKG) and Magforce AG (DE:MF6G) account for 69% of the portfolio value and their value currently exceeds Heliad’s market cap, having appreciated 34% and 76%, respectively, in 2017 to date. The performance of these holdings and the diversification offered by Heliad’s 12 other investments may make it an attractive way to access the German tech, e-commerce and lifestyle sectors at a discount.
Q117 NAV growth expected to continue
Following a difficult 2016, when the share prices of Heliad’s two biggest holdings fell, Q117 has seen a reversal, leading to 17% NAV growth in Q1 from €8.43 to €8.92 per share. This has come on the back of good results from FinTech and progress on the roll-out of MagForce’s cancer nanotherapy. Heliad’s other investments appear to have interesting potential for development, particularly in the e-commerce space. The recent acquisition of a stake in bmp Holding, a listed company operating in a similar market to an existing investment, may provide synergies as well as a clearer valuation should a merger take place.
Simple strategy and diversification to come
Heliad invests in relatively small companies in Germany’s growing tech and e-commerce sector, both private companies and listed small caps, which management believes are undervalued. It looks to invest in companies with revenues of under €50m but with growth potential. The management fee is 2.5% of NAV and a 20% carry on realised investments. Heliad expects to make around four new investments in the next 12 months following the bmp investment in May, equity funding for which was provided by FinLab’s biggest shareholder, BF Holding.
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