@woollydog perhaps a hefy assumption but if you see the article...

@woollydog perhaps a hefy assumption but if you see the article below it has been priced well below its peers.

https://www.copyright link/business/banking-and-finance/hedge-fund-vgi-partners-to-float-on-asx-raise-for-listed-fund-20190507-p51kqe

they are raising $75m for 20% of the company, valuing the company at $375m. for calandar year ended 2018 the company earnt $34.9m putting it on a PE of 10.74, however it should be noted that the $34.9m result includes very high performance fees. the details can be found on page 52 of the prospectus.

https://www.vgioffer.com/assets/docs/VGI-Partners-Limited-IPO-Replacement-Prospectus.pdf

a few other things to note:
- $66 million in cash after the offer is over
- fees from the VG1 LIC have not been collected until April this year as they have gone to recouping the cost of the listing so they are not in the historical numbers. the management fee on VG1 is 1.5% of funds under management, therefore if my calcs are correct this adds $12.85m per year to management fees
- performance fees for the 4 monts to 30 April was $20m and was $5.4m for the 6 months to December
- they have opened an office in Japan which will increases costs
- the AFR has also recently suggested that perhaps at some stage they will list an asian LIC.
- the founders aren't selling anything, the purpose of the offer I assume is to be able to reward / remunerate other staff members.
- Free float will be illiquid.

for me the critical number is what is the level of performance fees going forward and I find that pretty hard to estimate. nonetheless I listened to the call yesterday and thought they detailed it all pretty well, their track record is very impressive, like you I am also going to participate.