I get a 100% ROIC (or 2x MOIC) - they put out $2.1m and got $4.2m back.
Nice money (and amazing IRR given short time from funding to settlement), but the issue with these cases is lack of volume and their granularity. It's a mathematical fact that, all other things being equal, we as shareholders are far better off with IMF writing, say, $200m worth of 1.6x MOIC business than, say, $100m of 2x MOIC business. With the overhead being where it is (ie very large), the key focus of management has to be about cranking volume of commitment even if it comes at the expense of a lower MOIC. And to crank volume they need to be chasing big complex corporate and portfolio litigation, as I suspect it's tough cutting big cheques for family law matters.
IMF Price at posting:
$1.82 Sentiment: Buy Disclosure: Held
