The share buy back is likely in place for the two former...

The share buy back is likely in place for the two former directors - Brad Harrison - 2m shares and Michael Hynes - 1.3m shares to sell their shares. Total 3.3m shares. Total shares on issue 78m shares so within 10% cap. There has been limited liquidity in the stock for the past two months as private asset managers are under pressure globally (ie Blackstone etc) with valuations for their private assets. In the US secondary trades for private asset funds are being discounted up to 30-50% of the last primary round. Also look at large Aussie REITs down 20-30% (refer USQ). Prior bear market cycles offshore small REITS on ASX can trade up to 20-50% discount to NAV as no liquidity. While AVC shows annualised recurring revenue at $5m this is likely to be under pressure going forward as asset valuations re-rate downwards. Other issue is primary raisings, ie AVC manufacturing more funds, are unlikely in FY23 when there is more attraction the secondary private asset trades for investors. AVC's annualised recurring revenue of $5m less cost base of $4m shows operational EBIT of $1m. Does not support current market cap of circa $70-$75m and therefore the company potentially is utilising its excess cash to buy well above the intrinsic value of the company when they would be better retaining the funds. Valuing a fund manager on AUM/FUM goes out the window in a bear market.