Gimv ‘The time is now', Step into a solid private equity compounder

Gimv's €247.0m rights issue (€242.1m net proceeds) successfully closed. A 7.15m shares started trading on the Euronext Brussels. We believe Gimv's new strategy marks the beginning of a new growth phase. By FY30, Gimv aims to double its portfolio value to approximately €3.5bn. This will be achieved by doubling its average ticket size to €50.0m, increasing its target portfolio return to 17.5%, and utilizing available dry powder of around €645.0m (KBCSe). Additionally, Gimv will extend the holding period for ‘anchor' participations such as Cegeka. This allows Gimv to fully realize the growth potential of these companies. We think Gimv will succeed thanks to its consistent compounding, efficient capital allocation and expertise in bolt-on acquisitions. We updated our model for the rights issue and all transactions post 1H FY25 results and estimate NAVps and TEVps to be €52.4 and €55.8. We resume coverage with a BUY rating and €56.0 TP, a 0% discount to our est. TEVps.