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Billionaire Spotify Founder Plans to Cash In on MiFID Blind Spot

  • Lorentzon targets smaller companies in his native Sweden
  • Investment is intended to seek out under-researched firms
Spotify Wants To Turn Its Podcasts Into TV Shows And Movies
Photographer: Gabby Jones/Bloomberg

The co-founder of Spotify is placing some of his estimated $6.1 billion fortune into a new investment firm that plans to unearth hidden gems overlooked by equity analysts.

Martin Lorentzon, the Swedish serial entrepreneur who still retains an 11.1% holding in the music streamer, has bought a roughly 90% stake in Stockholm-based Cervantes Capital AB. The asset manager plans to look for companies that don’t get much attention from research units at the major banks.