ASMDEE: Management Owns SEK +550m of Stock

Our latest research report on Embracer Group can be found here, where we focus on the Kingdom Come: Deliverance II release.

Asmodee is a SEK 23bn company

February 4th was the X date for the Asmodee spin-off; the market has shown us what it believes Asmodde is worth. The first day of trading is on the 7th of February.

Embracer Group (EMBRACB) stock declined from SEK 230.0 at close on February 3rd to an open of SEK 131.6. This means that the implied share price of Asmodee is SEK 98.4, which corresponds to a market value of SEK 23bn (EUR 2bn). The prospectus has been published and can be found here.

Management is always key for us; they drive the business daily and execute the current strategy (which they also often dictate). Therefore, we find it interesting to examine the key people who have built Asmodee over the years into the board gaming powerhouse it is. However, management should also look into management ownership to gauge shareholder-friendliness.

Since its founding in 1995, the company has had three CEOs, all of whom are still actively involved in the business. These individuals are Marc Nunes (Founder and first CEO), Stéphane Carville (CFO, then second CEO), and Thomas Koegler (current CEO).

Ownership Timeline & Valuations

Asmodee's timeline can be divided into four periods. We have tried to highlight leadership positions, value, and revenue growth.

1995-2014: Founder Period

• Founded by Marc Nunes

• Leadership: Marc Nunes (Founder & CEO)

• Revenue (2014): €125m

• Sold to Eurazeo for €143 million in 2014

2014-2018: Eurazeo Period

• Leadership: Stéphane Carville (CEO)

• Revenue (2018): €414 million

• Sold to PAI Partners for €1.2 billion in 2018

2018-2022: PAI Partners Period

• Leadership: Stéphane Carville (CEO)

• Revenue (2021): €1.1 billion

• Sold to Embracer for €2.75 billion in 2022

2022-2024: Embracer Period

• Leadership: Stéphane Carville (CEO until September 2024)

• Thomas Koegler (CEO from September 2024)

• Revenue (FY 24/23): €1.3 billion

• Implied market cap:

Incentives matters

It is of utmost importance to us that both the board of directors and the management team have a vested interest in the company alongside the other shareholders. This shared investment ensures that their motivations and incentives are aligned with the overarching goal of creating shareholder value. When the board and management are personally invested, they are more likely to make decisions that benefit all shareholders.

Chair of the board, Lars Wingefors

Just like for Embracer, Lars is one of the key individuals as his company, Lars Wingefors AB, controls 18.7% of capital and 38.8% of the votes. We feel that most people know a lot about Lars, but if you want a deeper dive into this entrepreneur from Värmland, Google him (or ChatGPT?).

The most interesting part of the shareholder table above is the “minority shareholders of Asmodee”. One could think this is some incentive structure created for the spin-off, but that is not the case. It has been their PAI Partner acquisition.

This was the Initial transaction structure for Asmodee when Embracer acquired the company:

• Embracer acquired 96% of Asmodee’s shares from PAI Partners and other minority shareholders

• The minority shareholders retained approximately 4% ownership in Asmodee

• The 4% minority stake was subject to specific terms:

  • Put and call options were exercisable in years 2, 5, and 6 after completion

The prospectus provides more details about the “minority shareholders,” which include “former and current” management team members.

We have no information about who owns the other 3.04 million shares. The owners might be former management members or not the “top” level people mentioned in the prospectus but key personnel further down the management layer. It could also be a employee share pool that can be used when hiring top talent.

By the looks of it, the top management team and the board are highly incentivized to work hard to create shareholder value due to their significant shareholdings. The total value held by board members (minus Lars) and top management is around SEK 550m.

A profile of Thomas Koegler

It’s great that so many at the management level have substantial shareholdings, but ultimately, the CEO has the utmost responsibility for executing the strategy and driving growth. We thought it was great to dig a little deeper into Thomas Koegler and how he became Asmodee's third CEO since its founding. For a deep presentation done by Thomas, look at the 2024 CMD webcast.

Career Progression at Asmodee

• Thomas started as an International Program Manager in 2015

• Became Head of Strategy and Business Development in 2019

• Served as Executive Vice President of Interactive and Entertainment

• Appointed Deputy COO in June 2023

• Named CEO in September 2024

Key Achievements

During his tenure at Asmodee, Koegler has:

• Overseen 35+ company acquisitions

• Led the acquisition of BoardGameArena in 2021, which grew to over 10 million registered accounts

• Managed the development of Asmodee’s 350+ IPs, including major brands like Catan, Ticket to Ride, and Pandemic

• Focused on franchise development and expansion into new forms of entertainment

Leadership Style

Lars Wingefors, Embracer CEO, describes Koegler as a “unique leader who brings together Asmodee’s legacy with a fresh generational imprint on its future direction”. Koegler has demonstrated his business acumen by successfully operating under various ownership structures, including private equity management.

Focus areas

It sounds like Thomas will prioritize a return to acquisitions, targeting over 20 companies to strengthen Asmodee’s publishing and distribution footprint, particularly in hobby and miniature games. These acquisitions will help expand Asmodee’s reach into high-recurring buyer segments and new geographies. Here are a few key slides from the CMD:

Koegler is also focused on improving financial stability. He aims for mid-single-digit organic revenue growth and an EBITDA margin above 18%. With the recent debt reduction, he plans to lower Asmodee’s leverage ratio to below 2x for long-term stability.

A key part of his strategy is transforming Asmodee into a consumer-facing brand. He envisions moving beyond its B2B roots to increase market recognition, drive stronger sales, and complement its studio brands. Koegler’s vision is to position Asmodee for sustained growth and industry leadership.