RE: Reply to max21 Sep 2019 20:30
Hi Rambo- I had the same issue posting yesterday! Please forgive me as I will try to answer your question based on memory and out on a Saturday!
Last year there were a few interviews with GS and also with DS. In one of the interviews they had a target of 30p per share and we're looking to complete up to 6 deals in an 18month period.
At that time a lot of the licensing, structuring and team were not in place
Now, it seems that everything is in place.
I personally spoke with GS on a couple of occasions in late summer and early Autumn of last year and they were working hard on things. I asked him about the size of the contract(s) and he said that figures of $50m-$100m were being discussed and it seems that this is the benchmark in the j dustry.
From interviews the typical return is about 15% and from that a percentage is taken, plus fees
I believe that it will be about 20-25% of that 15% + an annual or performa ce type annual fee.
So, in my mind I believe $100m AUM would represent about $3m- $4m plus fees to the company.
However, a typical contract seems to be 10years, so fees would be collected during this period.
Now, please remember that they are looking at several contracts and these will probably be like buses and once one is agreed it would be followed by other(s) soon after.
I think that we will be testing 2p+ -2.25p on Monday/Tue. I believe that on first contracts we will be nearer to 8-15p.
As a note, I believe that things could potentially be better due to this being considered a good return and safe investment. Considering global market uncertainties, alot of money is no info to safer investments!
So, market uncertainty could be our friend! These are just some of my thoughts and welcome contributions, but DYOR and I think we will do well.