week of truth, page-5

I had a good look at the fund documents, and it does look very interesting if the yields are realistic and the IPO occurs. I already have enough exposure to RNC which will be impacted by the success of REX/HALs fund raising initiatives.

It does not make sense (for me) to add risk to these events. Plus, if I was that confident of the listing(s) occuring I would be buying RNC as there are better risk/reward metrics. If the deal goes through, you will receive almost twice the RNC price in cash and get the REX/HAL exposure for free. Pre tax of course.

I have a feeling the retail and family office investors will find the REX fund attractive given the yield and simplicity of the underlying business model. What they won't find attractive is the structure of the fund, which reminds me of Allco, Babcock and Macquarie structures pre-GFC. As I read through the documents I had flashbacks to Babcock&Brown Power.

Investors seem very keen on yield and liquidity right now, hopefully REX/HAL can tick the boxes. The REX/HAL rep was extremely confident that debt and equity markets are available to them in size, but what else could he say?

GLTA