Lumine Group Inc

“Lumine is a structurally sound VMS serial acquirer with Constellation Software's capital allocation playbook, mission-critical software moats built on switching costs, and a decade-plus of acquisition runway in its communications and media niche. FCF has compounded from CAD 34M to CAD 232M in four years. At 22x FY2025 FCF — after a 63% drawdown from peak — the valuation is fair, not cheap, but sufficient for a long-term investor to initiate a small position given credible 3-5x return potential over 10 years. The key risk is not the business model but acquisition discipline over time; a CSI-trained team is the best possible insurance, though Lumine's three-year standalone track record limits confidence. Governance subordination to CSI is a structural discount that must be accepted. Position sizing should reflect fair-not-wide margin of safety: tranches, not a full position.”