Hi @Billysmith97I'll start by declaring I am a PAC shareholder...

Hi @Billysmith97

I'll start by declaring I am a PAC shareholder and have been for 7 years approximately.

In terms of issuing GQG shares to PAC holders, Regal will hold a large number post takeover. Regal own 11% of PAC already, so they are paying a large chunk to themselves. This will equate to approximately 12M shares in GQG.

Regal's timing is perfect. While a lot of shareholders and outsiders would currently hold GQG in high regards, the most valuable boutique owned by PAC is Victory Park Capital (VPC) - Private Credit in US market. VPC is currently valued at $70M on PAC's books, but it will start generating more money than GQG by a significant margin over the next three to four years. GQG is valued at $164M at $1.38 per share. You can imagine what VPC will be worth and the additional value it will provide, at least $2 per PAC share.

If you are a current Regal shareholder, PAC is not an easy business to understand. I can assure you Phil King has done his diligence.

To provide a bit of insight, a lot of the FUM PAC's boutiques own generates earnings at the end of the life of each fund (European Waterfall model versus US waterfall model).

Victory Park Capital and Proterra have a large number of funds ending life after operating for ten years and will generate significant revenues to its owners. PAC's EPS are set to jump and will demonstrate this at the end of August, but Regal shareholders will benefit now.

Cherry on the top are businesses like ROC Partners.

Personally I would like to see PAC stay an independent business, but it has been undervalued by the market for such a long time. Something like the Regal/River capital takeover had to happen eventually, even though the price is probably $2 short the sum of PAC's parts.

Best of Luck
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