learnd SE is a holding company focused on a buy-and-build strategy within the niche building operations and environmental services. Previously designed as a simple umbrella company of its operating unit, learnd SE redefined its strategy, adjusted its ownership structure including a partial management buyout and repaid most of its existing debt with the proceeds in 2025. Positioned to start fresh in 2026, we expect the company to gradually transform into an incubator for companies operating in similar markets and further portfolio additions to follow in the mid-term.
The current portfolio comprises a 49.5% stake in learnd Atlas Ltd., a UK market leader in building management services, rapidly growing at a 16.3% CAGR (eNuW; 2024-28e) with revenue retention of 80%. Active in building operations and environmental services, its purpose is to enable homeowners and property managers to monitor, control and report on their building's settings and performance more effectively and conveniently, while saving costs through processes supported by cutting-edge technology. The company is currently expanding into Europe, specifically Ireland. By potentially reducing its stake and taking on new debt financing, learnd SE would be able to engage in further attractive investment opportunities, in our view.
Value creation of learnd SE as an effective incubator for companies stems from its ability to recognize use cases for cutting-edge technology. It can leverage its key expertise in operational building maintenance, rethinking traditional business practices and knowledge in compliance for the UK and Ireland to aid a growth company in delivering better customer outcomes. Through its connections in these markets and by providing growth capital, it can aid small companies in scaling at a faster pace, as proven by its acquisition track record at learnd Atlas Ltd.
The current business environment provides favorable acquisition tailwinds for scaling young companies like learnd Atlas. Many small business owners in building operations or related services are nearing retirement, while an insufficient influx of skilled successors is available to take over and grow existing customer bases to the scale necessary to make rising technologization economically viable. High technologization is essential as building efficiency standards and regulations continue to tighten. Building system complexity is also on the rise, with building operations encountering new expectations (i. e. EV-charging or grid imbalances from renewable energy sources). Hence, there are clear opportunities to incubate young firms in this field.
Exciting fields for learnd SE to engage in include facilities management (4.5x to 6.0x EBITDA transaction multiples in H1 2025) and environmental services (6.0x to 8.0x EBITDA transaction multiples in H1 2025), which can be significantly enhanced in value by size and technology from past small scale local operations with limited technological use.
Positive news flow is to come from strong operational developments in learnd Atlas and further investments of learnd SE, positively impacting learnd SE's financial statements and fair NAV.
We initiate our coverage with a BUY and a PT of € 4.80, which is derived from a sum-of-the-parts approach, valuing the individual portfolio companies separately.
ISIN: LU2358378979
