Julio Utrera of Southeastern Asset Management presented his investment 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.

Financially, Allfunds is projected to generate €647 million in revenue and €420 million EBITDA in 2025, reflecting an EV/EBITDA multiple of 8.8x and a free cash flow yield of approximately 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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About the instructor:

Julio Utrera, CFA serves as Senior Analyst at Southeastern Asset Management. He joined Southeastern’s London Office as an Analyst in 2021. He previously held public and private equity investment research roles in T. Rowe Price International Equities and AnaCap Financial Partners. Prior to that, he was an M&A Analyst at J.P. Morgan’s Investment Banking division in London. Mr. Utrera received his bachelor’s degree in Business Administration and Finance from C.U.N.E.F University and a master’s degree in Value Investing from OMMA Business School, as well as holding the CFA Certificate in ESG Investing.

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