Their approach is that of a "perpetual owner," meaning they do not intend to sell the companies they acquire, similar to CSU.
Their strategy is based on the following principles:
Company Portfolio
Röko holds a diversified portfolio of companies across Europe. Here are a few examples to illustrate the variety of their investments:
Addedo (Sweden): A software reseller and consulting firm specializing in financial consolidation.
Atemag (Germany): A developer and manufacturer of components for CNC machines.
Les Deux (Denmark): A men's fashion brand.
ETB Technologies (United Kingdom): A specialist in refurbished enterprise IT hardware.
Oppigårds (Sweden): One of Sweden's leading craft breweries.
Pureoptics (France): A provider of network transceivers and cables.
Financial Information and IPO
I read that Röko AB completed its Initial Public Offering (IPO) on Nasdaq Stockholm in March 2025, generating strong interest from institutional and retail investors.
My question is: Is this a copycat of CSU and would you invest in it considering it's market cap ?
Do you like the CEO Fredrik Karlsson, was previously the CEO of Lifco, another highly successful Swedish serial acquirer ?
We do not know many (i.e. any) Swedish management teams. ROKOB went public in March at 2.048K SEK, and is now 2.779K SEK. It was the biggest Nordic listing in three years. We would, at least based on our limited knowledge, agree with the assessment noted in the question: Röko AB demonstrates strong characteristics of a quality investment company, particularly for investors attracted to serial acquirers and decentralized conglomerate models:
Business Model: Röko AB acquires small, high-quality, profitable companies across Europe and allows them significant operational independence, promoting entrepreneurial drive and retaining key management through a minority retention model. This encourages founders to stay engaged and aligns long-term incentives.
Acquisition Track Record: Since inception, Röko has closed 33 deals across 8 countries, with its EBITA growing to SEK 1,227 million in 2024 and group net sales of SEK 6.2 billion for 2024. They focus on both B2B and B2C sectors, broadening their opportunity set and improving portfolio diversification.
Financial Performance: Röko's sales have increased tenfold in five years (a 78% annualized rate), with positive organic growth throughout, especially strong from 2020–2022. EBITA margins have improved from 18% (2020–21) to 20% (2024); cash conversion is efficient (operating cash flow/EBITA of 89% in 2023–24). Leverage has dropped significantly, and ROIC has risen from 10.4% (2020) to 14.4% (2024).
Quality Control and Risks: The performance of Röko’s subsidiaries varies. The best acquisitions have delivered EBITA growth three times that of the worst-performing units, illustrating that due diligence and selection criteria matter. Management is transparent about this dispersion in outcomes.
Valuation Comparison: Röko currently trades at a discount compared to established serial acquirer Lifco, though Lifco's mature portfolio has higher average margins and returns. This discount could be justified by Röko's shorter track record and higher risk, but it also suggests attractive upside if execution remains sound.