Hi PAC holdersAfter making what will probably be perceived as a...

Hi PAC holders

After making what will probably be perceived as a s***post in a MFG thread, thought I would post in here given my interest in alt managers. I’m not trying to troll here but am trying to get a better understanding of the business.

Basically have two questions
1) How do holders value PAC?
2) What advantage does PAC have in acquiring stakes in asset managers in other countries?

I’ve only done peripheral work on this name, and am mainly interested given a hold a similar business that is based in the USA (P10 Holdings). P10 acquires full ownership of alt asset managers: interesting, it acquires just the mgmt fee revenue, with the performance fees/carry staying with the investment teams

When I look at PAC, I’m not keen on the public equity asset managers, and the minority stakes on the whole

I’m also not sure on the ability to acquire asset managers in other countries: unless PAC have super unique insights, why wouldn’t P10 or the multitude of local/US acquirers of asset managers not be buying the US-based asset managers? Same for asset managers in other countries

When I look at P10 in answering the q’s:
1) Based on FCF. High visibility of P10 revenue given locked-up AUM. P10 has some unique aspects that result in excellent conversion of “Bull**** earnings” (Munger-speak for EBITDA) to FCF that make its CF stream easy to value. Currently FCF yield is somewhere around 5-6%, will probably grow > 10% for years
2) P10 providers a unique way for asset managers to compound their own capital efficiently in a tax-advantaged manner (P10 usually acquires managers for a combo of cash + issued equity, and has some tax/amortisation assets that minimises taxes). Like PAC, P10 is able to look at small managers that large alt asset managers (ie. KKR) or stake acquirers probably can’t be bothered to look at

Like I said indicated the MFG thread, I think alt asset managers have a long growth runway and PAC has some elements that I like

Apologies for the ramble, any feedback/thoughts welcome