PRESS RELEASE

from MLP AG (isin : DE0006569908)

Original-Research: MLP SE (von NuWays AG): Buy

Original-Research: MLP SE - from NuWays AG

Classification of NuWays AG to MLP SE

Company Name: MLP SE
ISIN: DE0006569908

Reason for the research: Update
Recommendation: Buy
from: 11.07.2024
Target price: EUR 11.50
Last rating change:
Analyst: Henry Wendisch

Another performance fee quarter ahead; chg. est.

Topic: With the end of Q2, two major public funds of MLP's asset manager FERI have surpassed their respective cut-off dates, above their old HWM and benchmarks. As a result, we expect the collection of another € 4.2m performance fees from public funds in Q2, in detail:

Optoflex as main performance fee driver: On June 28th 2024, FERI's second largest public fund (€ 1.3bn AuM) has again surpassed its old HWM from 31st March 2024 while achieving a 1pp outperformance over its hurdle-rate (Euro short-term rate, €STR). As the Optoflex records performance fees on a quarterly basis (vs. yearly at most other funds), we consequently expect a € 3.9m performance fee contribution from the Optoflex in Q2.

Euro Equity Flex with a small contribution: This € 247m large fund records performance fees only on a yearly basis with its cutoff date on June 30th. On this day, the fund recorded a 14.9% performance above its old HWM from June 30th 2023, while its benchmark (EURO STOXX 50 Net Return) recorded a 14.0% performance in the same period. Consequently, 15% of the 0.9pp outperformance is eligible for performance fees which we estimate to be € 0.3m for Q2 (see p. 2).
Potential upside from private equity carries: historically, FERI has collected c. € 1-2m performance fees from its alternative assets in the second quarter (Q2'22: € 1.1m; Q2'23: € 2m). These are discrete events and can not be observed from the outside. Therefore, it remains a blackbox for us, whether private equity carries will be recorded or not in Q2'24e, posing as a potential upside of € 1-2m (see p. 2).

AuM composition dominated by FERI: as of Q1'24, FERI makes up c. 81% of MLP's € 59.3bn AuM base. Here, 1) public funds make up c. € 3.6bn, while the largest parts are 2) alternative assets of c.€ 17.5bn (i.e. hedgefunds, private equity, infrastructure and real estate) and 3) c. € 28bn of 'other assets' which are undisclosed but should be made up of liquid assets/securities for individual investment strategies and white label solutions for institutional clients, in our view (see p. 2).

Against this backdrop, we now incorporate € 4.2m performance fees in our model (prev. € 2m). As our new EBIT estimate of € 90m (old: € 88m) is substantially above the € 75-85m EBIT guidance, a guidance upgrade with Q2 results seems likely. Therefore, we reiterate our BUY recommendation with an unchanged PT of € 11.50, based on FCFY'24e and SOTP.

You can download the research here:
http://www.more-ir.de/d/30189.pdf
For additional information visit our website www.nuways-ag.com/research.

Contact for questions
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag Adresse: Mittelweg 16-17, 20148 Hamburg, Germany ++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++

-------------------transmitted by EQS Group AG.-------------------

The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.

See all MLP AG news