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clock Created with Sketch. 13/04/23
14:13
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Originally posted by ipsofactoid:
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I'm a bit unconvinced about this acquisition. The stake purchased implies a circa US$180M valuation for a business with only $1.5Bn in FUM...this seems like a real stretch in my view. According to their linkedin profiles, the firm has been around since 2014, so they've had 9 years to grow already and this is not a huge level of FUM after 9 years. It has echoes of PNI's acquisition of Five V...I think PNI overpaid significantly on that deal.
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You make some good observations. In the end it is a portfolio investment for PAC with <10% of NTA allocated to this acquisition in a different investment space - they have excellent diversification across different asset classes. It only takes one to takeoff and yield a good return for PAC.
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