A strong, defendable business at a discount

Think of a business that has 50% market share; number one position in an oligopoly. A business whose average client length is over 20 years. This is a business with 90% revenue visibility. That’s the business I spoke about at the Future Generation Investment Forum in the video below.

Equiniti is like the ‘Computershare of Europe. It’s the largest player in share registries and employee share plans. Not just that, but it’s still gaining market share, with over 80% of IPOs that listed last year.

When we met with the business, it was trading at an unusually low multiple, and we couldn’t work out why. Management told us it was because they were about to lose some clients, but it was priced as though it would lose a lot more than just a couple of clients. In reality, they’ve lose no clients since we first invested, and have actually gained market share.

Hear my full thoughts on why this is such an attractive investment here: