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Fund managers have to report the detailed costs of their fees charged to clients and there is great pressure to keep these low.
Investment Trusts are getting treated under the FCA rules as if they were unit trusts charging fees rather than listed plcs whose fees are reported and dealt with as they would be by any other public company.
This probably explains why Border Pensions were selling recently.
Some info here on part of the problem why fund managers aren't buying.
https://pensionsandsavings.com/time-for-ministers-to-intervene-on-investment-trusts-as-fca-has-failed-to-achieve-change/
The only sensible paper for market news remains the FT.
Telegraph will get even worse if Paul Marshall gets control of it.
He used his ownership of GB News to attack NatWest over Farage's "debanking" while his other firm Marshall Wace has a large short position against the bank.
This was apparently completely normal
Investments over the last 18 months are also likely to have been done at reduced valuations so will have picked up some bargains along the way.
Https://finance.yahoo.com/news/reddit-ipo-key-things-know-090000743.html
Where the portfolio has frothy valuations there are others like Iceye that haven't been adjusted up as no recent funding rounds.
The Reddit IPO is priced at 6.5bn.
Anyway Revolut is more like Stripe and neither are in a rush to IPO at a reduced valuation.
If the market is the world's best fundamental analyst why are so many UK companies getting swooped up at large premiums to their SPs?
The value they were holding Perkbox at sounded fairly accurate.
The Telegraph article about Triple Point referenced Molten's discount as 54% last year.
https://www.telegraph.co.uk/business/2024/03/08/revolut-investor-slashes-fintech-valuation-5bn/#:~:text=US%20tech%20investor%20TriplePoint%20Venture,%2433bn%20at%20its%20peak.
That is actually an error as MV cut it by 40%, not 54%. But saying that they never valued it internally at 33bn as they thought it was way too frothy.
I think when Revolut raised at 33bn MV actually realised part of their Revolut investment. I saw it on a presentation slide listing successful exits.
And they have recently bought some back as it's one of the holdings in the Seedcamp fund they recently bought.
Revolut is held by Molten at a value based on market cap of about 16bn dollars.
The US VC Triple Point dropped it down on their books last week from 28bn to 23bn.
So MV is showing signs of prudent valuations.
Apologies Senator you are right.
I think I had in mind they had knocked it down again by about £10m
Graphcore is already written down to £10m, which is unlikely to present a problem.
The shareholders of Forward I mean
The Forward Partners got their Molten shares available to trade so may be selling?
The Sky article suggests that of the £130m the founders are sharing £70m, angel investors £30m leaving potentially another £30m for Molten.
Tech Crunch article on the 2019 funding round only mentions angel investors and Draper (Molten).
Think they had a Barclays loan to pay off but could be a tidy sum.
From Molten's annual report in 2021 they had invested £14m with no further funding rounds.
To be clear the value of £18-20m was what Molten valued their holding at- not the actual whole company valuation
Well spotted. Up until 2021 Perkbox was one of the core portfolio companies with a value of £18-20m and Draper Esprit (Molten) led the last round in 2019.
Companies house has shown them breaking even on revenue of about £30m the last couple of years
Sounds like margins are tight in the industry so 4x revenue valuation not bad.
Nice one to exit as they have been invested there for about 10 years.
Then you need to pitch to Royal Mail, which is a completely different company to the Post Office, which offers over the counter services to pensioners etc
You want Ocado to provide basic banking and payment services and sell stamps?
Not sure if the robotic arm is capable of that!
The arm is in use at Luton and can pick 50 items in 5 minutes and they travel at 4 m/s