By Svea Herbst-Bayliss
NEW YORK (Reuters) – Impactive Capital doesn't pressure companies to sell, but rather wants them to do better for themselves, co-founder Lauren Taylor Wolfe said on Tuesday, citing student loan company SLM (NASDAQ and the chain of Basic Fit gyms as possible lasting success stories.
“We take a long-term view,” Taylor Wolfe said, adding that the firm, which calls itself an impact-oriented activist fund, wants companies to operate as best they can and will work with management on strategies to drive up the price of the actions. “We look for stable businesses where time is our friend.”
Taylor Wolfe spoke at the 13D Monitor Active-Passive Investor Summit in New York.
Basic Fit, a Dutch gym chain, offers a basic workout space for members with weights and cardio equipment, but few employees and no pools, saunas or scented towels. With more than 1,600 locations today, Taylor Wolfe predicted that the company, based in Hoofddorp, Netherlands, could have 3,000 locations by 2030. Staffing can be as small as having just one employee on site during business hours. beak.
The company reported a 13% increase in year-over-year membership growth during the third quarter and a 17% increase in quarterly revenue. It closed trading at 24 euros per share on Monday and could rise to 70 euros per share in three years, Taylor Wolfe said.
Similarly, SLM, commonly known as Sallie Mae, could see its stock price roughly double in three years, he said, noting that the student loan company has done a good job buying back its shares. The stock closed at $22.95 on Monday and he said it could rise to $44 a share in three years.
The company, which generates $7 billion in loans each year, has captured 60% of the market, Taylor Wolfe said, adding that market share is poised to grow as some competitors have gone out of business.
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