Visa Inc. (V) is a leading global payment network. The company authorizes and facilitates electronic payments for consumers, merchants, and banks.
Visa benefits from consumer spending growth and the secular shift from cash to electronic payments. Most of its revenue comes from international markets, where consumer spending and the adoption rate of electronic payments are rising quickly. The company generates significant free cash flow, which is being returned to shareholders through dividends and share repurchases. We believe Visa enjoys high barriers to entry given its well-established brand, ubiquitous merchant acceptance network, and extensive banking relationships.

Mastercard Incorporated (MA) is a leading global payment network. The company authorizes and facilitates electronic payments for consumers, merchants, and banks.
Mastercard benefits from consumer spending growth and the secular shift from cash to electronic payments. Most of its revenue comes from international markets, where consumer spending and the adoption rate of electronic payments are rising quickly. Margins should continue expanding due to operating leverage. The company generates significant free cash flow, which it uses for acquisitions and share repurchases. We believe Mastercard enjoys high barriers to entry given its well-established brand, ubiquitous acceptance network, and extensive banking relationships.

S&P Global Inc. (SPGI) provides credit ratings, indices, data, and analytics to the financial, transportation, and commodities markets.
S&P Global benefits from the secular growth of rated bond issuance, the ongoing shift from active to passive investing, and growing demand for data and analytics. The company operates in oligopoly markets, where it enjoys formidable competitive advantages. Excess cash flow is being used for accretive acquisitions and is being returned to shareholders through share repurchases and dividends. The 2022 merger with IHS Markit should create significant shareholder value through cost savings and cross-selling services to the combined customer base.

Apollo Global Management, Inc. (APO) is one of the world's leading alternative asset managers. The company manages over $600 billion in assets, mostly in credit. It also owns Athene, one of the largest providers of annuities in the U.S.
As a leading alternative asset manager, Apollo has a dominant franchise in private credit, where it has spearheaded the matching of insurance liabilities with investment-grade, illiquid credit investments to generate better returns than its peers. We think Apollo will continue to grow in credit and insurance, where it has significant scale and expertise. The company should also see growth in assets, fees, and spread earnings in the years ahead, since it earns management fees on assets, as well as excess spread on liabilities following its 2022 merger with insurer Athene.

Intuit Inc. (INTU) is the leading provider of accounting software for small businesses and tax preparation software for individuals.
Intuit has leading positions in two large markets: small business accounting software and individual tax preparation software. The company's QuickBooks product is used by nine million businesses for accounting, payroll, and other business management processes. TurboTax is the leader in individual tax preparation software, but with just 28% share of total U.S. tax returns, the company still has a long runway for growth. Management targets double-digit revenue growth, with expanding margins and ample cash flow generation over the long term.

The Progressive Corporation (PGR) is a property and casualty insurer and the third largest personal automobile insurer by premiums in the U.S., with 13% to 14% market share. The company targets a combined ratio of 96% or lower.
Through superior underwriting and distribution, Progressive should continue to win market share in personal auto, leading to high single-digit premium growth over a multi-year period. At a 4% or better underwriting margin, plus the investment income from $50 billion of float, we believe Progressive can grow earnings per share at over 20% annually. The company should ultimately generate a return on equity of more than 20%. Progressive also pays a regular dividend each quarter and a special dividend in most years.

Fair Isaac Corporation (FICO) is a data and analytics company focused on predicting consumer behavior through re-sellable algorithms (FICO Scores) and software (Applications and Decision Management Software).
We believe Fair Isaac has meaningful growth opportunities across all its business lines. In FICO Scores, special pricing initiatives in B2B seem likely to continue. In Software, years of substantial investment are bearing fruit and should lead to notable margin expansion over the next several years. Management has a shareholder-friendly capital allocation strategy with nearly all free cash flow used for share repurchases.

MercadoLibre, Inc. (MELI) is the largest e-commerce company in Latin America. The company operates the MercadoLibre e-commerce marketplace, the Mercado Pago fintech platform, and the Mercado Envios suite of shipping solutions for sellers on its platform.
MercadoLibre benefits from the emergence of two secular trends: e-commerce and digital payments. The company has a significant first-mover advantage and is investing aggressively in logistics to widen its competitive moat. Latin America is a predominantly cash-based economy with e-commerce penetration under 20%, and MercadoLibre has an attractive, asset-light marketplace business model. We believe its logistics network will become a key competitive advantage at scale, and we see a significant opportunity in Mercado Pago off-platform.

Tradeweb Markets Inc. (TW) operates electronic marketplaces for trading rates, credit, equities, and money markets.
Tradeweb is benefiting from the electronification of the fixed income market and is gaining share from less innovative competitors. Tradeweb enjoys network effects from pooling liquidity from its 2,500 clients and benefits from high switching costs as a result of its deep integration into client technology and workflows. We expect margin expansion to be driven by operating leverage and efficiency initiatives.

Fiserv, Inc. (FI) is a leading payment processing company. It is both a merchant acquirer and a card issuer processor and owns other payment-related businesses. The company helps merchants accept electronic payments and financial institutions issue credit cards. It also sells core bank software.
Fiserv is one of the largest payments businesses in the world. Its scale helps it deliver low-cost solutions, which is a critical advantage in payments. Fiserv's products also tend to be sticky, and the company has made good acquisitions that have led to growth above its peer set. It has a long history of growing EPS at a double-digit rate and is led by a highly experienced management team with significant equity ownership. We think Fiserv will continue to grow revenue and earnings as a leading player in the industry with both scale and differentiated payment offerings.

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