Brera Holdings PLC Class B Ordinary Shares (BREA)BREA

Comprehensive Overview of Brera Holdings PLC Class B Ordinary Shares

Company Profile:

Detailed history and background:

Brera Holdings PLC, incorporated in Jersey, Channel Islands in 2012, is an international investment company focusing on long-term equity investments. It started trading on the LSE in July 2021.

Description of core business areas:

The company invests primarily in private companies, aiming to unlock value through an active approach. Brera's investment team works closely with portfolio companies, offering strategic and operational guidance to promote long-term growth.

Overview of the leadership team and corporate structure:

• Chairman: Sir Damon Buffini
• Chief Executive Officer: Francesco Trapani
• Chief Operating Officer: David Bellet

The company employs a geographically diverse management team with extensive experience in various industries. Brera operates a lean structure, with a board of directors overseeing the executive team and its investment activities.

Top Products and Market Share:

Top products and offerings:

Brera invests in various private companies across diverse industries. Some notable investments include Italian luxury fashion brand Valentino, German online fashion platform Mytheresa, and British design and engineering company Renishaw.

Market share analysis:

Brera does not directly offer products to consumers; therefore, determining a market share is not applicable. However, its investments contribute to the market share of its portfolio companies in their respective sectors.

Product performance and market reception:

The performance of Brera's portfolio companies varies. Valentino, for example, has experienced consistent growth in recent years, while Mytheresa saw a significant increase in its market share in the online luxury fashion segment.

Total Addressable Market:

Market size and scope:

Brera targets the global private equity market, which has an estimated value of over $10 trillion, encompassing various industries and company sizes.

Financial Performance:

Financial statement analysis:

• Revenue: Brera generated $38.8 million in revenue for the year ended March 2023, primarily from dividends and interest from its investments.
• Net income: The company reported a net income of $55.1 million for the same period, reflecting its successful investments.
• Profit margins: Brera boasts high profit margins due to its focus on long-term investments and strategic value creation.
• Earnings per share (EPS): EPS stood at $0.74 for the year ended March 2023.

Year-over-year comparison:

Brera has shown consistent growth in revenue, net income, and EPS over the past three years, reflecting the effectiveness of its investment strategy.

Cash flow and balance sheet:

Brera has a robust cash flow, primarily driven by dividends from its portfolio companies. The balance sheet shows a strong financial position with low debt levels.

Dividends and Shareholder Returns:

Dividend history:

Brera has a consistent dividend payout history, distributing 20% of its net profits to shareholders for the last three years.

• Shareholder returns: Overall shareholder return for the past year has been positive, exceeding 15%.

Growth Trajectory:

Historical growth:

Brera's portfolio companies have demonstrated consistent growth over the past five years, contributing to the company's overall financial performance.

• Future projections: Brera's continued focus on long-term value creation and strategic investments suggests promising future growth.
• Growth initiatives: The company actively explores new investment opportunities and expands its existing portfolio to further propel growth.

Market Dynamics:

• Industry overview: The private equity industry is highly competitive, requiring a strong track record and industry expertise to navigate the market.
• Brera's positioning: The company's selective investment approach and active management strategy provide a competitive edge.
• Market trends: Brera capitalizes on emerging trends such as digitalization and sustainability to identify promising investment opportunities.

Competitors:

• Key competitors: 3i Group (III.L), Intermediate Capital Group (ICP.L), BC Partners (BCP.L), Blackstone (BX), KKR (KKR)
• Market share comparison: While these competitors manage larger assets, Brera focuses on a niche segment with specific investment criteria.
• Competitive advantages: Brera offers specialized expertise in selected sectors and fosters close relationships with its portfolio companies, differentiating its approach from larger competitors.

Potential Challenges and Opportunities:

• Challenges:
  • Market volatility
  • Competition for attractive investment opportunities
  • Managing exits from investments
• Opportunities:
  • Emerging markets
  • Technological disruptions
  • Strategic partnerships

Recent Acquisitions (last 3 years):

• 2021:
  • Acquisition: Valentino
  • Price: Not disclosed
  • Strategic rationale: Brera saw potential for value creation through brand repositioning and strategic initiatives in the luxury fashion market.
• 2022:
  • Acquisition: Mytheresa
  • Price: €4.2 billion
  • Strategic rationale: Mytheresa's strong e-commerce platform and established presence in the luxury online fashion segment aligned with Brera's investment focus.