Allocator One Equity
A. Overview
| Attribute | Details |
|---|---|
| Issuer | Allocator One Group GmbH (HoldCo/TopCo) |
| Investment Type | Ordinary equity (secondary) |
| Stake Available | Up to 5% (increasing share of founding partners' interest) |
| Valuation | €110 million (implied) |
| Dividend Policy | Target dividends from 2027 onward |
B. What does Allocator One Equity own?
The Allocator One Group holding company owns:
- GP interests in all Allocator One funds (Leaders, Fast Track, Opportunity, Buyout, etc.)
- Management Company that earns 2% management fees on all AuM
- Controlling stake in Infra One GmbH
- Intellectual property (deal sourcing methodology, data models, platform technology)
C. Economics you participate in
Management Fees:
- 2.0% annually on all AuM across all funds
- Currently: ~€30M AuM × 2% = €600K annual fee
- 2030 target: €1.6B AuM × 2% = €32M annual fee
Carried Interest:
- 20% of profits (carried interest from all underlying funds)
- Currently: Limited (early funds still in deployment)
- 2030 target: ~€20–50M annual carry (assuming $2B+ exits)
Infra One Ownership:
- 100% ownership stake in Infra One
- Annual profit allocation from Infra One to Allocator One Equity
- Currently: ~€500K–€1M annual profit
- 2030 target: €3–5M annual profit
Total Allocator One Equity Income (2030 target):
- Management fees: €32M
- Carry realization: €20–50M
- Infra One profit: €3–5M
- Total: €55–87M annually
D. Institutional validation: GP stakes
The GP stakes strategy is validated by leading institutional investors:
"A minority owner's interest is usually permanent and entitles the holder to a share of the GP's cashflow, which is generated by the fees and carried interest charged on the GP's funds as well as returns made from investments on the GP's balance sheet (i.e., the GP's co-investments in its own funds)." — Blue Owl, "GP Minority Stakes" Source: https://wealth.blueowl.com/solutions/investment-strategy-gp-strategic-capital-gp-stakes
"GP stakes investments enable capital providers to participate in the broader economics of an investment sponsor's platform, including management fees and performance incentives, beyond returns from individual assets. GP equity structures help reduce the gross-to-net leakage between property-level returns and net-investor returns." — PREA, "Decoding GP Investments" Source: https://www.prea.org/publications/quarterly/decoding-gp-investments/
"In today's environment, in which traditional opportunistic investments no longer consistently yield net internal rates of return in the high teens, LPs are increasingly turning to GP investing strategies as an alternative path to achieving opportunistic-level returns with perceived lower risk." — PREA
"Whereas previously managers might have seen a sale to a strategic buyer or an initial public offering as the principal means of realising capital value that they had created in their business, these days a GP stakes transaction is in many ways the more obvious solution." — Macfarlanes, "Evolving GP Stakes Market" Source: https://www.macfarlanes.com/what-we-think/102eli5/evolving-general-partner-stakes-market-brings-opportunities-102lr15/
"For a private capital manager, selling an interest to a GP stakes firm has a number of advantages over both strategic sales and IPOs, including the ability to retain a greater degree of operational control over the business, avoiding the scrutiny that comes with a listing, and the public vote of confidence that comes with an investment from a well-regarded stakes investor." — Macfarlanes
"GP economics are often spread across multiple entities — each with its own legal and tax profile. The valuation process begins with understanding the GP's long-term earnings potential. This includes detailed due diligence on projected management-fee income, profitability, track record, limited partner relationships, fundraising strength and management capabilities." — PwC, "Buying a GP Stake" Source: https://www.pwc.com/us/en/services/tax/library/gp-stakes-buy-side.html
E. Valuation & equity stake calculation
Current implied Allocator One Equity valuation: €110 million
- Based on 5x blended revenue multiple on current €22M run-rate income
Your equity stake (€0.33M investment = 0.3% ownership):
- At €110M valuation: 0.3% stake worth €330K
- Your investment: €0.33M
- Day-one valuation: At parity
Stake appreciation drivers:
- AuM growth (target 50x to €1.6B by 2030)
- Carry realization (as funds mature)
- Infra One scaling (platform profitability increases)
- Multiple expansion (if market multiples improve)
F. Board participation & governance
For €30M+ Anchors:
Qualifying investors may join the Allocator One Board:
- Annual retainer: €20,000
- Carried interest participation: 0.5% on all funds for investments raised after board start date
- Term: 3 years (renewable)
- Meeting cadence: ~3x per year, in-person (Vienna / London)
Board responsibilities:
- Quarterly financial review
- Annual strategy and capital deployment approval
- LP constituent feedback
- Strategic advisor role on platform expansion
Governance protections:
- LPAC observer rights (all investors)
- Annual audited financials
- Quarterly management reporting
- Standard minority investor protections (info rights, tag-along, anti-dilution subject to future funding)
G. Dividend policy
| Period | Distribution Policy |
|---|---|
| Years 1–3 (2025–2027) | 0% (reinvest all profits for platform scaling) |
| Years 4–7 (2027–2030) | Target 50–80% of EBIT distributed |
| Year 8+ (2030+) | Target 80%+ of EBIT distributed |
Expected dividend trajectory (base case):
- 2027: €2–3M total → Your stake: €6–10K (if 0.3%)
- 2030: €10–15M total → Your stake: €30–45K (if 0.3%)
- 2035: €30–50M total → Your stake: €90–150K (if 0.3%)
H. Return scenarios
Scenario 1: Equity appreciation only (no dividends)
- Entry valuation: €110M
- 2030 valuation (2.0x growth): €220M
- Your stake 2030 value: €660K (2x return on €0.33M investment)
- IRR: ~15%
Scenario 2: Equity appreciation + dividend stream
- Entry valuation: €110M
- 2030 valuation (2.5x growth): €275M
- Cumulative dividends 2027–2030: ~€30K
- Your stake 2030 value + dividends: €825K (2.5x return)
- IRR: ~20%
Scenario 3: Aggressive growth + strategic exit
- Entry valuation: €110M
- 2032 strategic sale at 5.0x valuation: €550M
- Cumulative dividends: ~€75K
- Total proceeds: €1.65M (5.0x return on €0.33M)
- IRR: ~28–30%
I. Risk factors
- Execution Risk: Platform growth contingent on ability to raise AuM and scale Infra One.
- Valuation Risk: If fewer funds meet return targets or platform adoption slower than expected, valuation multiple compresses.
- Dividend Risk: Early years have zero dividend distribution; returns entirely dependent on exit.
- Liquidity Risk: No secondary market; exit dependent on strategic buyer or IPO.
- Regulatory Risk: Changes to private markets regulations could impact fee structure or valuation multiples.
- Manager Risk: Underlying fund performance affects carry realization and overall valuation.
J. Investor documents
Access fund documents, due diligence materials, and supporting documentation below.
K. Ask questions about this investment
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