Momentum building at 360, and impressive results in H1-22.
Net of GDC disposal, FUM sits at $1.3 Bn, which will increase further if 360 can get their hands on the Irongate TAP (3rd party managed funds) which are included in the MoU, but for some reason, don't appear in the presentations? My understanding was this would be another $200M of property. Therefore
$1.5Bn by year end. Though 2/3 of this related to PMG, which is only 50% owned, so this might be a bit inflated on look through basis.
Buried in the Financial statements was the figure of the 50% sale of the
GDC investment manager ($4.4M). For some reason this was never disclosed with the original announcement of sale? I never understand why companies are so cagey about the sums, when eventually they need to be spelled out in the accounts. But this seems like an OK outcome (given the small revenue base of the GDC fund, and neglible performance fee).
Though on this basis, it was hard to get to the
funds mgmt revenue figure for the 1H result, as the gain of sale was
included in the funds mgmt fee figure of $5.7M (which doesn't sound correct).
Slight negative, is the
credit business. Which based on segment reporting, delivered a loss, and given the paltry $40M under management, it is hard to see how this could support the staffing and operational expenses required. Perhaps TGP are patient here in the rebuild. They had a good thing going with TOT when it was a 'debt play' so perhaps in a 2-3 year view this business will be running well. The capital raise at TCF (the listed credit fund) was a bit lacklustre in support... goal was to double TCF funds, did not get close.
But still holding on, and like the stock for the following.
1) Like the PMG business - was acquired at good price, (iinitially and then in the TOT transfer) and continues to grow strongly. PMG has also benefited by TGP's sponsorship and access to capital.
2) Chairman has signaled his intent to increase ownership of TGP shares
(already 32%!)3) The 'trading profits' or whatever you choose to call them, are a huge contributor at 360. Yes, they are 'non recurring' but for investors that are comfortable with that, the track record is there, and IAP stake will deliver a similar trading profit for the group.
4) Balance sheet cleaned up by IAP sale, and GDC exit 6 months ago.... plenty of capital to deploy in the right opportunity.
