The roll-up thesis: durable growth, margin expansion, recurring-revenue quality, prudent leverage and disciplined capital allocation.
The roll-up thesis is proving out: 3 integrated cohorts delivered +3pts of EBITDA margin and leverage sits at 0.1x against the 5.5x covenant. The remaining value is in the 4 unintegrated cohorts — finish synergy capture before exit diligence prices it.
6 of 6 headline metrics improving vs prior · still off target: Revenue $3.83B vs $4.10B, EBITDA Margin 48.4% vs 50.0%, Rule of 40 (AUM Growth + Margin) 47 vs 50
Sets deal capacity and refinancing risk.
4 of 7 cohorts sit below 80% synergy capture; integrated cohorts already show +3pts of margin — the same playbook is unbanked EBITDA until applied.
Hold management to 90-day synergy recovery plan; track at next board meeting.
Synergy at 78% of model; integration 80% complete.
Push subscription/Fund Admin System attach on Integration installs.
Recurring 40% vs 45% strategic target; Integration BU dilutive.
Consistent top-line growth with steady margin expansion.
Proof of the roll-up: EBITDA uplift and synergy realization per acquired brand.
| Acquired brand | Year | Revenue | ARR | EBITDA uplift | Synergy | Status |
|---|---|---|---|---|---|---|
| Nippon Large Cap Fund | 2021 | $19.92M | $7.03M | 5.27%→8.2% (+2.9299999999999997) | 92% | Integrated |
| Nippon Tax Saver Fund | 2021 | $12.89M | $4.69M | 4.69%→7.62% (+2.9299999999999997) | 90% | Integrated |
| Nippon Hybrid Fund | 2022 | $56.26M | $30.47M | 6.45%→9.38% (+2.9300000000000006) | 88% | Integrated |
| Equity Portfolio: Hybrid Fund | 2023 | $33.99M | $11.13M | 5.86%→7.62% (+1.7599999999999998) | 74% | In progress |
| Debt Portfolio: Hybrid Fund | 2024 | $24.03M | $8.2M | 5.27%→6.45% (+1.1800000000000006) | 55% | In progress |
| Nippon AIF Growth Opportunities | 2024 | $21.68M | $7.62M | 5.27%→7.03% (+1.7600000000000007) | 78% | In progress |
| Nippon Wealth Management | 2024 | $16.99M | $5.27M | 4.69%→5.27% (+0.5799999999999992) | 40% | Early |
Integrated cohorts (AFA, Firecom, DavEd) show ~3pt EBITDA expansion post-integration; newer cohorts (ISC, Signet) remain early with synergy capture in progress.
Covenant headroom funds the continued M&A program; cash generation supports debt service.
High-materiality external signals and competitive M&A from the adapter feed.