This article first appeared on GuruFocus .
Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Strong return to shareholders with EUR450 million returned via dividends and share buybacks.
-
Fee-paying assets under management (AUM) increased 30% year-over-year to $37.8 billion.
-
Fee-related earnings (FRE) rose 46% to EUR87.1 million, with a pro forma FRE margin above 39%.
-
Solid operating performance from unlisted assets, with ACAMS EBITDA growing 8.8% and Global Educate showing strong growth.
-
Low loan-to-value (LTV) ratio of 7.8% and a strong financial structure with an average bond coupon of 2.8%.
Negative Points
-
Net asset value (NAV) was impacted by lower market multiples for unlisted assets, despite solid company performance.
-
Scallion faced challenging market conditions, with negative EBITDA growth, though a recovery plan is in place.
-
CPI's U.S. operations were affected by federal funding uncertainty, limiting overall growth.
-
Retail investor outflows persisted in Monroe Capital's evergreen vehicle, with net redemptions of $90 million in H1.
-
No fundraising activity at IK Partners in 2026, with the next cycle not starting until 2027.
Q & A Highlights
Here are the key highlights from the Wendel SE H1 2026 earnings call, presented as summarized Q&A pairs.
-
Warning! GuruFocus has detected 3 Warning Signs with STU:WIS.
-
Is STU:WIS fairly valued? Test your thesis with our free DCF calculator.
Q: What drove the significant rebound in the valuation of the Wendel Investment Managers (WIM) platform between Q1 and Q2 2026? A: **Laurent Mignon, Group CEO**: The valuation in Q1 was very low due to depressed market multiples for alternative asset managers. We specifically mentioned this dip during the Q1 call. The strong rebound in Q2 reflects a recovery in those market comparables. Additionally, we refined our valuation methodology to better link the 100% company value with the deduction of fund stakes, ensuring a more appropriate number for the market.
Q: Can you provide an update on the current fundraising environment and LP appetite for private credit and private equity? A: **Cyril, WIM Head**: For institutional private credit, Q2 was in line with Q1's record levels, with over $200 billion raised globally. This is positive for Monroe, as 60% of this is in direct lending, its core strength. For retail, the dynamic remains different with continued outflows, though Monroe's net outflows are marginal. **Laurent Mignon, Group CEO**: In private equity, there is a clear differentiation between good and average performers. IK is focused on returning capital to LPs through successful exits, which is key for its next fundraising cycle in 2027. There is strong appetite for secondary strategies, which bodes well for Committed Advisor.
Q: What is the outlook for the portfolio companies (WPI) that are currently underperforming, specifically CPI and Scallion? A: **David, WPI Head**: For CPI, the U.S. business is impacted by federal funding uncertainty. We are reorganizing the sales team, hiring 14 new members and a new Chief of Sales. We expect a strong improvement in growth, but the timing is more likely 2027 rather than H2 2026. For Scallion, core sectors like aerospace and defense are showing meaningful growth. A strong recovery plan is in place, and we expect H2 to be better than H1, finishing the year on a positive momentum.
Q: With a low LTV of 7.8% and significant cash from the Stahl and IHS sales, can we expect a new share buyback program after completing the 9% program? A: **Laurent Mignon, Group CEO**: The key metric is our conservative LTV, which gives us leeway. We have a commitment to significant shareholder returns from our Capital Market Day, and we will stick to that. However, we must balance share buybacks with the development of our activities. It doesn't mean we will launch a new program this year, but we are committed to our overall shareholder return targets.
Q: What is the status of the BNP Paribas partnership and what does it entail? A: **Laurent Mignon, Group CEO**: The partnership originated with AXA, which was a significant LP in Monroe and a GP stake investor. After the AXA IM and BNP Paribas merger, it became a dual partnership with both BNP Paribas Asset Management and AXA. They act as both cornerstone investors and LPs in our funds, including Committed Advisor. The merger has allowed us to enlarge our relationship with the BNP teams.
Q: What is the current level of redemption requests for Monroe Capital's non-traded BDC (MCIP)? A: **Cyril, WIM Head**: For Q2, the redemption request was 8.9% of assets, which was capped at 5%. This is up from 5.3% in Q1. However, the industry average for Q2 was above 14%, so we are well below that. The net outflow was only $90 million out of a $6 billion fund, showing the impact is marginal for our business.
Q: What is the outlook for M&A opportunities for both the WIM platform and Wendel Principal Investments (WPI) in the second half of 2026? A: **Laurent Mignon, Group CEO**: We see opportunities in three areas. First, bolt-on acquisitions for our WPI portfolio companies like BV and Global Educate. Second, we are constantly monitoring new direct investments for WPI, though we didn't find the right fit in H1. Third, for the WIM platform, while we constantly monitor opportunities, our main priority for 2026 has been internal development, integration, and organic growth.
Q: What drives the expected step-up in pro forma FRE from 95 million in H1 to over 105 million in H2 to reach the 200 million target? A: **Cyril, WIM Head**: The step-up is driven by two factors. First, we will maintain a high level of capital deployment at Monroe Capital, which feeds the fee base. Second, for Committed Advisor, any capital raised in H2 will, due to a catch-up mechanism, generate fees retroactively from the beginning of 2026, providing a significant boost to H2 earnings.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
