argonaut Posted June 9, 2014 Share Posted June 9, 2014 They announced the sale today...nice return! São Paulo, June 9, 2014 - GP Investments, Ltd., with its head office at 129, Front Street, Penthouse, Hamilton HM 12, Bermuda ("GP Investments") hereby announces the sale of equity investment in Sascar Participações S.A. ("Sascar" or the "Company") held by GP Capital Partners V, L.P. Fund ("GPCPV"), to Compagnie Financiere du Groupe Michelin "Senard et Cie", a company that holds all industrial and commercial companies and research activities of Groupe Michelin outside France. The deal comprises 100% of Sascar's shares, with other shareholders and co-investors being parties to the purchase and sale agreement, which is subject to certain precedent conditions including the approval of the Brazilian Antitrust Agency (Conselho Administrativo de Defesa Economica - CADE). Founded 15 years ago, Sascar is Brazil's leading fleet management and cargo tracking services firm. The transaction value was based on an enterprise value of R$1.6 billion (around US$ 714 million) for Sascar. Alongside BRZ Investimentos' fund, GPCPV owns 56% of Sascar's total capital. GPCPV will receive approximately US$260 million for its 46% stake in the company. GPCPV's total investment in Sascar will generate a cash-on-cash multiple of 2.6x and an estimated IRR of 33% in U.S. Dollars terms in about three years (or 3.5x cash-on-cash multiple and 45% IRR in Brazilian Reais). The transaction value is subject to the adjustments set forth in the definitive agreements. Link to comment Share on other sites More sharing options...
plato1976 Posted June 9, 2014 Share Posted June 9, 2014 Nice... Was it carried on their NAV at its cost? Then we suddenly gain sth near 50% of equity value? They announced the sale today...nice return! São Paulo, June 9, 2014 - GP Investments, Ltd., with its head office at 129, Front Street, Penthouse, Hamilton HM 12, Bermuda ("GP Investments") hereby announces the sale of equity investment in Sascar Participações S.A. ("Sascar" or the "Company") held by GP Capital Partners V, L.P. Fund ("GPCPV"), to Compagnie Financiere du Groupe Michelin "Senard et Cie", a company that holds all industrial and commercial companies and research activities of Groupe Michelin outside France. The deal comprises 100% of Sascar's shares, with other shareholders and co-investors being parties to the purchase and sale agreement, which is subject to certain precedent conditions including the approval of the Brazilian Antitrust Agency (Conselho Administrativo de Defesa Economica - CADE). Founded 15 years ago, Sascar is Brazil's leading fleet management and cargo tracking services firm. The transaction value was based on an enterprise value of R$1.6 billion (around US$ 714 million) for Sascar. Alongside BRZ Investimentos' fund, GPCPV owns 56% of Sascar's total capital. GPCPV will receive approximately US$260 million for its 46% stake in the company. GPCPV's total investment in Sascar will generate a cash-on-cash multiple of 2.6x and an estimated IRR of 33% in U.S. Dollars terms in about three years (or 3.5x cash-on-cash multiple and 45% IRR in Brazilian Reais). The transaction value is subject to the adjustments set forth in the definitive agreements. Link to comment Share on other sites More sharing options...
plato1976 Posted June 14, 2014 Share Posted June 14, 2014 what's the last time GP issues new shares? From what I see, they have been buying back shares from 2013 to 2014 he hypes up his stock and then issues shares instead of debt. He hypes it up so he has to issue less shares (because he is a major shareholder himself) Link to comment Share on other sites More sharing options...
rainman Posted June 27, 2014 Share Posted June 27, 2014 http://valueandopportunity.com/2014/06/26/gp-investments-gpiif-us-your-chance-to-team-up-with-brazilian-investment-superstars-like-uncle-warren-did/ Link to comment Share on other sites More sharing options...
MrB Posted June 27, 2014 Share Posted June 27, 2014 These guys cancelled a good chunk of options under their 2009 plan and reissued them under the 2011, thereby extending the life and lowering the exercise price materially. Recently, they diverted a significant portion of the carried interest to the managing partners of the underlying companies. Something to consider... Link to comment Share on other sites More sharing options...
Packer16 Posted June 27, 2014 Author Share Posted June 27, 2014 I have not heard of the latter. Do you have reference or source. TIA. Packer Link to comment Share on other sites More sharing options...
MrB Posted June 27, 2014 Share Posted June 27, 2014 Not off the top of my head and it's 23h40 for me. It was in the annual reports and I recall it being discussed in the AR, so you should be able to find it if you search for "carried interest" in the two most recent AR's. Ping me if you don't have any joy finding it. Link to comment Share on other sites More sharing options...
Packer16 Posted June 28, 2014 Author Share Posted June 28, 2014 I found it. It was a 25% carried interest in GP III (one of there smaller funds $250m initial capital). Packer Link to comment Share on other sites More sharing options...
plato1976 Posted June 29, 2014 Share Posted June 29, 2014 Interesting article - so this article basically casts doubt on their investment track record (after fee) with data - so hard to argue. The main thing is still if the mgt is in align with shareholders and if they pay is excessive http://valueandopportunity.com/2014/06/26/gp-investments-gpiif-us-your-chance-to-team-up-with-brazilian-investment-superstars-like-uncle-warren-did/ Link to comment Share on other sites More sharing options...
Packer16 Posted June 29, 2014 Author Share Posted June 29, 2014 This guy has made a mistake in reading the US GAAP statements which in part invalidates how bad he presents the situation. The US GAAP statements require consolidation of the PE vehicles so the fees from third-parties for the PE segment do no show up on the income statement. Footnote 2(b) discloses the third-party fees collected but not included in the income statement. The management fees on the US GAAP income statement are only from BRZ Investimentos and GP Advisers. This is why in there earning releases they do not use the US GAAP statements. I left the comments on his blog and he has not responded so we will see what his response is. Right now the AM is at about break-even if you as GP shareholder get the management services for free. I think the compensation issue is known and has declined over the past 12 months and I am sure 3rd Avenue and Sequoia are ensuring this is taking place going forward. They also repurchased shares since both of these firms have taken stakes. Packer Link to comment Share on other sites More sharing options...
yadayada Posted June 30, 2014 Share Posted June 30, 2014 packer what about calamos asset management. I like that one better after this has gone up already for a bit. Link to comment Share on other sites More sharing options...
Packer16 Posted June 30, 2014 Author Share Posted June 30, 2014 A good company but not cheap when you included the non-traded shares. Packer Link to comment Share on other sites More sharing options...
Laxputs Posted July 30, 2014 Share Posted July 30, 2014 Where are you guys finding total shares outstanding? In all their earnings statements I've downloaded, I can not find it anywhere (besides goolge and discount brokerages). Link to comment Share on other sites More sharing options...
gfp Posted July 30, 2014 Share Posted July 30, 2014 http://www.bloomberg.com/quote/GPIV33:BZ Link to comment Share on other sites More sharing options...
Laxputs Posted July 30, 2014 Share Posted July 30, 2014 Yeah, thanks. Just wanted to see it from the company somewhere, I meant. Link to comment Share on other sites More sharing options...
gfp Posted July 30, 2014 Share Posted July 30, 2014 http://www.gp-investments.com/gp2012/web/download_arquivos.asp?id_arquivo=3833E0D5-548F-48F7-A851-ABCD5FD759EA (Link opens PDF of GAAP financial statements) Page 2. and note 16(b): "Weighted average common shares outstanding - diluted 151,823,501" Link to comment Share on other sites More sharing options...
Laxputs Posted July 30, 2014 Share Posted July 30, 2014 Thanks very much. So 144mm shares as of Mar 31. It makes sense to include both A&B shares, rather than just the 110 A shares I keep seeing posted, right? They are both dilutive? And thus NAV/share is 3.03USD? Link to comment Share on other sites More sharing options...
Packer16 Posted July 31, 2014 Author Share Posted July 31, 2014 In addition you need to add about US$0.30 per share to NAV for recent transaction (Sascar and BR Towers) (post Q1 reporting). Packer Link to comment Share on other sites More sharing options...
Laxputs Posted August 2, 2014 Share Posted August 2, 2014 Been googling “carry” trying to understand the concept as it applies to GPI. Is the idea that the value of the carry comes from the fund manager reinvesting some/all of that carry rather than pocketing it? Because if it was all taken off the table, the carry would have no value to shareholders, correct? Or is the fund manager not an individual but the company, and therefore the shareholders get the value of the carry (in performance years)? And if the latter is true, a similar company, like Senvest, should be valued based on NAV per share (if historical track record is equal to or above market performance and investments are liquid), plus their capitalized EBIT? Link to comment Share on other sites More sharing options...
Packer16 Posted August 12, 2014 Author Share Posted August 12, 2014 Carry is the incentive fee paid to asset managers above a flat asset management fee. So for example if you have a 2 and 20 fees structure, you collect a 2% of AUM management fee and 20% above given benchmark (lets say 6%). The 20% above 6% is the carry. With this carry, most alternative asset managers sell at higher % of AUM than traditional asset managers who get paid on a flat fee basis. Packer Link to comment Share on other sites More sharing options...
investor-man Posted August 14, 2014 Share Posted August 14, 2014 http://online.wsj.com/articles/brazilian-presidential-candidate-eduardo-campos-may-be-linked-to-plane-crash-1407946724 I was hoping Campos would win the election :( RIP Link to comment Share on other sites More sharing options...
investor-man Posted October 27, 2014 Share Posted October 27, 2014 I can't believe she won http://www.ft.com/cms/s/0/b6324550-5d61-11e4-9753-00144feabdc0.html?siteedition=uk#axzz3HIhGmwcN Link to comment Share on other sites More sharing options...
Guest JoelS Posted November 1, 2014 Share Posted November 1, 2014 Some commentary from Mark Mobius; may be of interest http://mobius.blog.franklintempleton.com/2014/10/31/three-words-brazil/ Link to comment Share on other sites More sharing options...
argonaut Posted April 16, 2015 Share Posted April 16, 2015 Packer, Are you still sitting on this one? It has done well; however the Real to USD exchange rate has unfortunately mitigated the gains :)....Curious as to your current thoughts... Link to comment Share on other sites More sharing options...
argonaut Posted May 19, 2015 Share Posted May 19, 2015 A bit more news here: http://www.wsj.com/articles/as-most-avoid-brazil-one-property-firm-looks-to-upgrade-1432027802 Link to comment Share on other sites More sharing options...
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