In-Depth Reflections on Our Holdings
Byggmästaren AJ Ahlström - Ready for 2026
During the month, Byggmästaren AJ Ahlström held its annual “Byggmästare Day.” The focus was on the two largest portfolio holdings, Safe Life and Green Landscaping, as well as the smaller but exciting holding in DP Patterning. Below is an overview of these companies.
Safe Life
Safe Life (49% of NAV) focuses on selling and renting defibrillators along with related training and software for monitoring and maintenance. The rationale behind the business model is a major industry problem: a large share of installed defibrillators—on average 30 to 40 percent—do not work when they are needed. This is often due to electrodes and batteries not being replaced on time.
Traditionally, industry players have focused solely on selling the devices and then moving on to the next customer. Safe Life instead takes full responsibility by replacing electrodes and batteries at regular intervals, ensuring the defibrillator works when it is needed most. This creates recurring revenue streams and enables upselling of training, which is becoming a growing part of the business. A digital training platform has also been developed to make CPR training more cost-efficient and time-efficient for large companies.
Since its inception, the company has completed 43 acquisitions. The market for defibrillators is growing at around 10% per year, driven mainly by increased awareness of the importance of rapid intervention during sudden cardiac arrest and by regulatory requirements in several countries.
Current Position and Outlook
On a pro forma basis for the past 12 months, revenue amounts to EUR 249 million with an adjusted EBITA of EUR 26 million, corresponding to a margin of 10.5%. The focus going forward is on continued expansion through acquisitions in North America and Europe.
Safe Life has now reached a size where significant economies of scale are becoming possible. There are substantial synergies to be captured in procurement and logistics, as many of the portfolio companies essentially do the same thing. Overall, we see strong growth prospects for Safe Life, with new fuel added by Bridgepoint’s entry as a majority shareholder. Their resources and ownership position will help the company accelerate its growth journey even further.
Green Landscaping
Green Landscaping Group (32% of NAV) is a serial acquirer in ground maintenance, green area management, and urban landscaping. The company’s portfolio consists of 60 subsidiaries across Sweden, Norway, Finland, Lithuania, Germany, and Switzerland, with Sweden and Norway being the largest markets. The fragmented market has historically grown 3–5% annually, and Green acquires companies at 4–6x EBITA, with recent acquisitions made at the lower end of that range. The customer base is broad and well diversified, with no single customer accounting for more than roughly 2–3 percent of total revenue.
A Troublesome 2025
Green Landscaping has had a difficult 2025, with the share price down 35% at the time of writing, driven by several factors. A record-mild winter with very little snow hit the Norwegian subsidiaries hard, given their high dependence on snow-related services. To maintain volume in Norway, Green therefore deliberately reduced margins. In Q3, the company was also impacted by a project write-down of SEK 21 million due to a miscalculation on a construction project in Oslo. Green has implemented corrective actions, strengthened controls, and changed management. In addition, for the first time in the company's history, three units have been closed. At the start of 2025, there were eight unprofitable subsidiaries; our understanding is that three of these have now been shut down.
A Better 2026
After a turbulent year, 2026 looks more promising for Green Landscaping. Going forward, we expect normalized earnings of around 6–7% EBITA in Sweden and 10–11% EBITA in Norway. Green has refinanced its debt on more favorable terms, resulting in lower interest expenses (SEK 5–10 million per year). A more normal winter, the removal of loss-making units, market recovery, and lower interest costs create an attractive setup for next year. The leverage ratio of 3x EBITDA is somewhat high, and the company is strongly focused on reducing it—which we consider fully achievable. Lower leverage will provide stability and increase the capacity for additional acquisitions. According to consensus, Green trades at just over 9x 2026 EBITA— in our view a low valuation. We believe a multiple of 10–11x is more reasonable and see strong potential for re-rating from here.
DP Patterning
DP Patterning (6% of NAV) is a Norrköping-based technology company that manufactures flexible single-layer circuit boards using proprietary, patented machine technology. The circuit boards produced by the company are used across a wide range of applications, including RFID antennas, automotive components, communication antennas, wearable electronics, defense systems, and LED lighting.
The company’s goal for 2030 is to reach SEK 1 billion in revenue. Whether DP Patterning will achieve that target remains to be seen, but the potential appears very high. The main competitive advantage lies in its fully mechanical production process, which completely eliminates the hazardous chemicals required in traditional circuit board manufacturing. Traditional chemical etching generates 1.5 kg of chemical waste per square meter of circuit board produced, whereas DP Patterning’s process generates only 12 grams of recyclable aluminum shavings per square meter. This represents a significantly lower environmental footprint.
The technology lowers customer costs and can, in certain applications, deliver better performance than traditional methods. The current order book is strong, and internal production capacity is the only factor limiting higher delivery volumes. An important validation of the company’s technology came in 2024 with an order of approximately SEK 100 million from an international player, confirming the customer value offered by DP Patterning’s flexible circuit boards.
The overall picture is that Byggmästaren is heading into an exciting 2026 and has strong ability to maintain high NAV growth going forward.
Byggmästaren AJ Ahlström represents 3% of the Kavaljer Investmentbolagsfond.
Vef - An estanlished value creator in emerging market fintech
VEF is today one of the leading specialised investors in fintech across emerging markets. Since its inception in 2015, the company has delivered an annual NAV growth of around 12%, placing VEF in the same league as companies such as Industrivärden and Lundbergsföretagen.
A portfoilio of fast-growing fintechs with structural tailwinds
VEF’s portfolio consists of a range of fintech companies concentrated in three key markets: Brazil, India, and Mexico. These markets are characterized by structural growth drivers that create long-term tailwinds:
Limited access to banking services: Millions of individuals and businesses in these markets lack access to traditional financial services. Brazil, India, and Mexico together have more than 1.8 billion inhabitants, a significant share of whom are unbanked or lack access to credit.
Digital infrastructure: Rapid mobile penetration and digitalisation enable fintech companies to reach customers cost-effectively. India has built the world’s most advanced digital payments infrastructure (UPI), while Brazil has seen explosive adoption of PIX.
Regulatory support: Governments in these markets actively promote financial inclusion and have developed regulatory frameworks that encourage fintech innovation.
The portfolio is concentrated, with the three largest holdings making up more than 80% of total portfolio value:
Creditas (Brazil) – 45% of the portfolio
Juspay (India) – 17% of the portfolio
Konfio (Mexico) – 24% of the portfolio
Particularly noteworthy is the transformation since 2022–2023, when only 69% of the portfolio was at or could reach break-even, compared with today when more than 90% is self-sustaining and has reached break-even profitability.
Creditas - Brazil's leading digital lender
Creditas is Brazil’s leading digital lending company with a focus on secured consumer loans and products for small and medium-sized businesses. The company’s competitive advantage lies in offering secured loans backed by property and vehicles at significantly lower interest rates than unsecured consumer credit, which is the standard product in Brazil. This provides attractive conditions for customers while giving Creditas lower credit risk compared to traditional lenders.
After a more challenging period in 2023, the company has recently shown strong momentum, and this autumn/winter Creditas has taken several concrete steps towards a future IPO. In Q3 2025, the loan portfolio grew 17% year-over-year, and the company continues to deliver strong operational progress from a profitable base with solid growth prospects. In addition, Creditas has completed the acquisition of Andbank Brazil following approval from Brazil’s central bank. The transaction includes both the purchase of Andbank’s Brazilian banking operations and a partnership in wealth management. At the same time, Creditas executed the first closing of its Series G round, in which the Andbank group invested USD 108 million. In this round, Creditas was valued at USD 3.3 billion. VEF’s 8.5% ownership stake would at this valuation correspond to approximately USD 280 million, compared with the current book value of USD 186.8 million.
A natural question is why VEF does not immediately mark up its Creditas holding to the higher valuation. The reason is that VEF values unlisted holdings based on the most recent fully completed and definitively established pricing point. During the round, VEF converted its convertible loans to equity at a lower and more conservative valuation, and that level is used until the entire financing round is fully closed and all conditions are met. This can take several months, as the round often depends on formal approvals, including from the Brazilian central bank, which typically takes time. Once the round is fully completed, VEF will be in a better position to update the valuation to the higher level.
The conclusion is that Creditas is moving steadily towards an IPO, which we believe would unlock significant value for VEF and reduce the discount to NAV.
VEF represents 1% of the Kavaljer Investmentbolagsfond.
