These small caps are hugely attractive (if you’re brave), page-3

The real value play is playing the trade though ASX - PAC, who owns 4% of GQG and has ~35% of its book value of Boutiques held in GQG.

The upside in PAC is strong given the following:
1. Carrying book value of the net assets was $9.93 as at 31/12/2022. Current price $7.59 and therefore trading at 23% discount to book value.
2. With the recent run in the share price in GQG, it is now well above book value of $1.38 as at 31/12/2022. With the share price at $1.65, that is $32m in asset value uplift or $0.62 a share to PAC.
3. Victory Park is worth considerably more than the US$70m than it outlaid for 25% in 2018 of the business. Victory Park was purchased with FUM of $3.2B and now has $5.5B and will be the groups largest profit contributor in FY24.
4. Pennybacker, Carlisle, Banner Oak & Proterra all have the same momentum in FUM like Victory Park has had, strong growth since those boutiques were purchased.

EX GQG, there would be ~US$100M in uplift in the book value to PAC from their boutiques, plus add in GQG gains post Dec book value, the Net assets of the company start trending towards $13 a share.

PAC has advised that they will be releasing the fair value estimates of each Boutique at the financial results in August, so we will get a better understanding then.