| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 116.76 | 524 |
| Intrinsic value (DCF) | 8.00 | -57 |
| Graham-Dodd Method | 21.23 | 14 |
| Graham Formula | 7.63 | -59 |
Blue Cap AG is a Munich-based private equity firm specializing in investments in mature, middle-market companies across Germany, Austria, and Switzerland. Founded in 2006, the firm focuses on niche sectors such as business services, production, and technology-oriented industries, including coating, adhesive, plastics, medical, and metal technologies. Blue Cap AG typically invests between €5 million and €25 million in equity, targeting companies with sales values ranging from €30 million to €80 million. The firm prefers majority stakes and maintains flexible holding periods, investing directly through its balance sheet. Operating in the Financial Services sector under Asset Management, Blue Cap AG leverages its expertise in identifying and nurturing medium-sized companies with growth potential. With a market cap of approximately €77.6 million, the firm plays a strategic role in the DACH region's private equity landscape, offering tailored financing solutions for recapitalizations, management buyouts, and growth initiatives.
Blue Cap AG presents a mixed investment profile. The firm's focus on niche, technology-oriented middle-market companies in the DACH region offers exposure to specialized growth sectors. However, its FY 2023 financials reveal challenges, including a net income loss of €17.8 million and negative diluted EPS of €4.02. Positive operating cash flow of €19.6 million and a solid cash position of €38.6 million provide some liquidity buffer, but high total debt of €97.7 million raises leverage concerns. The dividend yield of €0.65 per share may appeal to income-focused investors, but the firm's beta of 1.048 indicates market sensitivity. Investors should weigh Blue Cap's regional expertise against its recent profitability struggles and sector concentration risks.
Blue Cap AG competes in the crowded German middle-market private equity space, differentiating itself through a sector-focused approach targeting niche technology and production companies. Its competitive advantage lies in deep regional expertise and a hands-on investment strategy, often taking majority stakes to drive operational improvements. However, the firm's relatively small scale (€77.6 million market cap) limits its ability to compete for larger deals against global players. Blue Cap's specialization in the DACH region provides local market knowledge but also creates geographic concentration risk. The firm's flexible holding periods allow for tailored exit strategies, but its recent financial losses suggest potential challenges in portfolio company performance. Compared to larger competitors, Blue Cap's strength is its agility and sector specialization, but it lacks the diversified portfolios and global reach of major private equity firms. The firm's technology focus aligns with growth trends but exposes it to sector-specific volatility. Its balance sheet investment approach differs from fund-based models, potentially offering more alignment with shareholders but limiting capital scalability.