Asset Manager Investing in Global Technology Sector

We're an asset management firm allocating our capital into asset classes benefiting from technological innovation and applications globally. We serve as a family office of a tech professional who has spent over a decade as an entrepreneur, operator, and venture investor across Asia and the US.

Our small team is made up of diverse investment professionals who research, identify, and execute relevant opportunities. We occasionally share some of our investment memos, insights, and analysis here.

Tuesday, May 26, 2020

Q2.2020 - Adyen: A Leading International Payment Platform

Adyen (OTCPK:ADYYF) (OTCPK:ADYEY) (AMS: ADYEN) is an interesting growth investment opportunity in the global payment processing space. Founded in 2006, the Amsterdam-based company is not as well known as PayPal (PYPL) or Stripe (STRIP). However, Adyen's strong global-first payment platform business has allowed it to acquire clients with massive international operations such as Uber (UBER), Netflix (NFLX), and Airbnb (AIRB).

Adyen is a global-first payment platform with €240 billion ($261 billion) of the transaction value (TPV) processed as of 2019. The fast-growing business is already twice the size of Square and over a third of PayPal by TPV. Given the scale, international exposure, and strong balance sheet, there are many upside opportunities Adyen can tap into going forward. Adyen is a cash-rich business that generates +€200 million of cash annually. It consistently converts over 90% of its EBITDA into cash. The valuation is also attractive. The P/TPV of ~0.13x is almost half as much as PayPal's.

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