Example of a listed share case
The following is a prime example of the type of equity investments the Fund seeks:
- Software company within a niche with high structural growth driven by legal requirements that make the company's product the standard.
- High entry barriers and switching costs make the market a duopoly where the company has won the majority of the market.
- Scalable business model with predictable revenue from royalty contracts of over 5 years with up to 100% gross margin.
- Contracts worth several billion SEK with 12 of the 15 largest potential end customers.
- Moreover, the value of the customer relationships above is several times higher because customers typically copy the technology to more models on their platforms, which has been underestimated by the stock market.