I think it shows a balanced approach to risk, and the need to...

I think it shows a balanced approach to risk, and the need to keep the parent (CFE) going with cash.

CFE monetize part of a company, like AKI or GLY, retaining an interest. So they make some profit now and retain an interest in the upside (via shareholding and/or royalty). Then when the full value of the asset is realised later on, be that via a full takeover or whatever, CFE profits again.

It is really no different than an individual taking some profits at a lower level, and being free-carried to leave some money on the table for the possible (risked) upside.

Meanwhile, that initial selldown brings in cash to buy into more underpriced assets (and return capital to shareholders). And so the cycle repeats. But CFE are never left without a seat when the music stops because they have been selling down and taking profits as they go, rather than holding the whole asset in the hope of a big single payday.

CFE is where it is today because of the pragmatism of taking profits and selling before the top. And in the current market, (or ANY market), I support this sort of strategy.

Yaq