Evolution AB

“Evolution AB is an exceptional B2B infrastructure business — near-monopoly live casino market position, ~69% EBITDA margins, fortress balance sheet, 90%+ FCF conversion — trading at 9x forward earnings with net cash, priced as though the business is in terminal decline. The regulatory and competitive risks are real but do not justify a permanent-impairment discount at current prices; even a modest growth recovery (mid-single digits) would drive a substantial re-rating. Management quality is the principal concern, limiting position sizing conviction, but the valuation more than compensates. Buy in tranches, targeting a 3-5% portfolio weight.”