Investment Theses

EQT AB is an alternative asset manager with €130 billion in assets under management (FPAUM), which the company invests in unlisted companies and assets (private equity). EQT charges a management fee percentage of 1.4%. In addition to the management fee, they also earn a performance fee (carry) if the investments perform well. Laaken attended the first capital market day in Sweden last month.

Rightmove is UK’s largest online real estate portal and the first thing that comes to mind when people think of moving.

VISA is a typical Laaken investment. The business model is simple, efficient, but almost impossible to imitate. An average of 0.05% is earned on every payment that passes through the VISA network. Buyers and sellers receive a reliable, fast and secure payment network. VISA is responsible for approximately 62% of total credit card traffic in the US and 40% worldwide.

Universal Music Group (UMG) is the world’s largest music label. They own a large and growing collection of irreplaceable music rights that we expect to increase in value over time. Music consumption has been steadily increasing, driven by the rise of streaming. UMG is a direct beneficiary of this secular trend, as it essentially earns a tax (or royalty) on music consumption.

Railroads played an important role in developing North America. Two centuries later, they remain critical to the economy. The US railroads account for ~40% of long distance freight volumes and haul one-third of the country’s exports. We expect railroads will remain essential for decades to come.

Ares Capital Corporation (ARCC) has been a constituent in our portfolios for over eleven years. Ares Management, a large global alternative asset manager, created ARCC as a direct lending company in 2004. Since inception, ARCC generated 12% annualized total returns for its shareholders. This compares to 10% by the S&P 500 over the same period.