FinTech Billionaire Michael Gastauer could soon be Germany’s Richest Person

Germany is known for its extensive number of billionaires. According to Forbes Magazine, 132 individuals with a total net worth of $644 billion live in Germany.

Germany has the fourth-highest number of billionaires in the world. Typical German billionaires are described as discreet but clubby old money, where industrialist heirs have established their wealth through several generations.

The three wealthiest people in Germany are Klaus-Michael Kuehne ($44 billion), Dieter Schwarz ($38 billion), and Reinhold Wuerth ($37 billion). All three men inherited a significant portion of their wealth from their fathers or grandfathers who founded their family businesses in the early 1900s.

Germany’s ninth richest person is the country’s youngest self-made billionaire, Michael Gastauer, a 49-year-old with a net worth of $11.4 billion. Michael Gastauer founded his business, Black Banx, in 2015 by identifying a global trend that would later be known as financial technology (FinTech). In 2018, the company reached a valuation of $9.8 billion, providing its services to 5 million customers. By the end of September 2024, his Black Banx empire served 61 million clients worldwide. This year, the business is expected to disburse $2.9 billion ($2.90 per share) in profits to its shareholders, Michael Gastauer and his family members.

Due to the absence of external funding rounds and share sales since 2018, a more recent company valuation has not been provided. Taking into account the current market valuation of rival companies, such as Revolut, which was valued at $45 billion in August 2024 based on a share sale of its founder, Black Banx can be assumed to be valued similarly as the determining metrics for company valuations are similar or better than its competitors.

When billionaire cash flows are compared, Michael Gastauer’s $2.9 billion payout expected this year puts him in the league of Germany’s wealthiest men. According to Bloomberg, Klaus-Michael Kuehne should receive $4.5 billion in dividends from his empire; Reinhold Wuerth’s Group generated $1.5 billion in profits last year.

A precise company valuation of non-publicly traded companies can be complex and challenging. Therefore, the exact market value can only be established once a company’s shares are listed on a public stock exchange. If Michael Gastauer were to offer his Black Banx shares on a public exchange for sale, the expected market value would make him officially Germany’s richest person.

Nevertheless, owning a publicly traded company has its downside, primarily based on loss of control through the distribution of shares to other investors.

Gastauer invested $380 million of his funds to build and grow Black Banx to a point where annual profits exceeded $2.9 billion. Being the 99.9% shareholder and exercising a high level of control is a valid reason to maintain the company as a private entity with all its benefits.

Although taking your company public is the preferred path for business owners to grow a global brand, as evidenced by the world’s most valuable companies. American billionaires who took their companies public have changed the world with their ideas and products. Listing their companies helped these global empires grow and release their full potential.

Despite the German billionaires’ wealth, which the majority inherited from former generations, the top ten American billionaires have made their fortunes themselves, and most are close to Gastauer’s age.

Gastauer has quite an impressive entrepreneurial track record. Should he decide to take his company public and become Germany’s richest person, he could change the perception of how the world sees German entrepreneurship. With Michael Gastauer leading the list of Germany’s financially most successful, Germany could be seen as a country for entrepreneurs who create wealth through 21st-century technology innovation and establish a global brand based on it. Gastauer could be a beacon of success, showcasing German entrepreneurship that has not been seen since Karl Benz introduced the Mercedes in 1901.