JDC Group: Gerlin Participaties acquires substantial stake in German fintech player

We are pleased to report that Gerlin Participaties has taken a 5 percent stake in JDC Group. This German technology company has developed a leading digital platform for the distribution, administration and management of insurance and investment products. Germany has Europe's largest insurance market, but remarkably still lags well behind other countries in terms of digitalisation. Many applications in Germany are still processed manually, and the long turnaround times are equally out of step with the times. It is precisely this lag that presents a huge opportunity for technology companies such as JDC Group.

JDC Group is by now an established name in Germany, offering thousands of financial intermediaries an integrated all-in-one solution. Through the platform, advisers can compare products on price and terms, manage client relationships, and handle claims or payments efficiently, among other things. With more than 6 million contracts under management, JDC is among the largest providers in Germany. Yet market potential remains substantial, precisely because adoption of digital solutions is still at an early stage.

The company has a scalable, inflation-resistant business model. Intermediaries use the platform in exchange for a share of the commission on contracts concluded. These commissions are paid out and indexed over the life of the contract, making a substantial share of revenue recurring. In addition, JDC's technology is deeply embedded in its customers' processes, making switching costly and unattractive. We also see the company's strong competitive position reflected in the numbers: JDC is growing faster than the market, has a high win rate in tenders, a loyal customer base, and benefits from economies of scale and efficient operational processes.

The company's founders (active since 2004) remain operationally involved as CEO and CFO. They recently extended their contracts to 2030. Together they own more than 10 percent of the shares, closely aligning their interests with those of other shareholders. In the discussions we have held with them since last year, their strong commitment and ambition to lead the company through its next growth phase are clearly confirmed.

The strategic focus is on accelerating growth in the number of contracts on the platform, both organically and through targeted acquisitions. The company also aims to further increase efficiency and scalability through innovation. Management is targeting gross revenue of €450-500 million and EBITDA of €40-50 million by 2030.

This investment fits excellently within our investment philosophy, which focuses on well-positioned companies with a solid foundation and strong growth potential. With this step, we underline our conviction that the digitalisation of financial services — and of the insurance industry in particular — in Germany is still in its early stages. As market leader, JDC Group is excellently positioned to benefit from this in the coming years.

We see JDC as a promising company with considerable growth opportunities. As an active and engaged shareholder, we look forward to contributing to the next phase of its development and further professionalisation.

Teslin holds a stake in JDC Group AG through Gerlin Participaties.