My conversation with Eugen Benedikt Russ.

A gentleman in his 30s who runs a $200 million a year holding company.

Since starting in 2018, they have achieved an IRR of 39% over the past 6 years.

A portfolio of 10+ companies (all majority owned)

They specialize in acquiring, managing, and operating profitable niche businesses in Online Marketplaces, Consumer Apps and SaaS

The smallest portco earns about $2-3m in EBIT, while the largest earns $19.2m in EBIT.

“These days you can run and operate profitably and successfully in these niches with a team of under 20 people nowadays. Sometimes even under 15 people. You can build a company that does $5 to $10m in revenue at a 40, 50, even 60% EBITDA margin. ”

If you care about running extremely profitable niche companies, a must listen!

Show Notes:

00:00:00 - Intro

00:05:48 - Haven’t raised a single dollar of outside capital

00:07:25 - Investment strategy (revenue, profit, location)

00:15:02 - A niche with 30% YoY growth

00:17:28 - A recent successful investment and how they think about the opportunities

00:21:38 - Finding the best talent

00:26:51 - Diversified portfolio

00:38:03 - The famous five

Follow Mikk/PrivatEquityGuy on Twitter: ⁠⁠https://x.com/PrivatEquityGuy⁠⁠

Join HoldCo Builders weekly newsletter on finding deals, raising capital, and growing small profitable niche businesses: ⁠⁠⁠⁠⁠https://privatequityguy.beehiiv.com/⁠⁠

Eugen on Twitter: ⁠⁠https://x.com/eugen_russ

This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.