Ann: FY23 Results Presentation and Managing Director's Overview, page-14

Hi @Lambingflat

It is a very important point that boutiques have sold at a premium to book value.



If we take Aperio which was sold at 2.29 times original purchase/book value, this was purchased at a valuation of $USD136M and sold by PAC for a total business value of $USD312M.
Aperio ended up being purchased by BlackRock two years later for $USD1.05B or 7.72 times PAC's original investment value.

PAC could have held on for another two years and made similar amount to GQG investment (albeit with a larger amount invested).

Believe VPC and ROC fall into this valuation category.

VPC with its growth, the Private Credit addressable market potential growth in all geographies (it is a global player, not just US) and the management team in place, VPC's total business value could easily achieve an IPO price of $USD1B in today's market - PAC 24.9% holding $USD249M. Convert into AUD at 65c and we are looking at $AUD383M ($7.22 per share), not $AUD144M.

ROC Partners with a similar business to Five V Capital purchased by Pinnacle for a 25% stake at $AUD65M two years ago, one could assume the valuation would be aligned to this (although ROC is 6 times larger based on FUM and has been growing quicker). Five V Capital business valuation at $AUD260M; ROC valuation at $AUD260M, PAC's 30% holding of ROC valued at $AUD78M, not $AUD25.6M.

Pennybacker is probably valued correctly at fair value price of $USD76M 16.5% stake. Pennybacker becoming classified as a Tier 1 and generating a 56% increase in annual recurring revenues justifies increased valuation. This values Pennybacker business at $USD460M. With the growing market of multi-family homes in the US and the avoidance of commercial property investments, the Pennybacker management team are safely managing exceptional growth in its market sectors.

The above are just thoughts on how PAC's business has performed in the past by investing in US based boutique fund managers. PAC is a unique business and has been/is being valued by Australian investors at a significant to value based on managements historical performance.

Best of Luck
Lost