William Blair initiated research coverage of Enfusion, Inc. (ENFN $22.52), a leading provider of SaaS-based investment operations management software.
Analyst Bhavan Suri estimated the company to generate sales of $106 million in 2021 and $142 million in 2022, and noted he believes the company will be able to sustain a Rule of 60 profile for the next several years.
“Enfusion offers a cloud-based end-to-end platform supporting asset manager operations across the front, middle, and back office,” Suri said. “The company’s comprehensive solution enables data unification and reconciliation to provide a real-time view into performance and management of the investment operations lifecycle. Management estimates an addressable market opportunity of over $19 billion based on current internal and external software spend in the asset management industry. We believe the company is well positioned to continually expand its addressable market by introducing capabilities to support additional alpha-generating strategies like private markets, ESG, and crypto, as well as through further product innovation. In our view, this highlights the early stage of its market opportunity, implying revenue penetration of less than 1%; as a result, we see a long runway for growth as the company continues to expand its product offering, customer base, and international reach.”
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