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[Idea note] - Catella: Hidden Gem Emerges as Balance Sheet Simplifies

Kavaljer believes that Catella represents a classic sum-of-the-parts opportunity where...

Author

Kristoffer Lindström
June 12, 2025

Idea note

This is an Idea note; It’s a collection of early signals – companies mentioned in fund letters, blogs, or by sharp investors online. Not a full pitch, just a starting point for ideas that might be worth a more in-depth look.

Misunderstood European Real Estate Manager Trading at 4x Core Business EBIT Following Strategic Asset Sale

Idea source: Kavaljer

Catella AB is a leading European specialist in property investments and fund management, founded in 1987 with its headquarters in Stockholm, Sweden. The company operates as a financial advisor and asset manager, with deep expertise in real estate investments, and maintains a strong pan-European platform with a global reach.

Ticker: CAT-B | Timeframe: 24-36 months | 💼 Special situation

Idea summary

Kavaljer believes that Catella represents a classic sum-of-the-parts opportunity where complexity has obscured the value of a high-quality, scalable Investment Management business with 18% CAGR growth over 9 years and sticky recurring revenues. The May 2025 Kaktus Towers divestment for SEK 2.1B was the critical catalyst that transformed two-thirds of market cap from “uncertain mega-project” to cash, dramatically simplifying the balance sheet. With SEK 19/share in net assets providing downside protection, investors are effectively paying only 4x normalized EBIT (SEK 300M) for the core IM business, which deserves a 13-18x valuation. The appointment of experienced CEO Rikke Lykke and the potential for capital returns create multiple re-rating catalysts, while majority owner Johan Claesson’s strategic flexibility adds M&A optionality.

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