Here is a DCF of the Fortress / Bentham IMF Funding Vehicle or...

Here is a DCF of the Fortress / Bentham IMF Funding Vehicle or  SPV, based on loose assumptions.:

i) That the SPV will maintains customary operating spread that IMF-Bentham has maintained through 2010 to 2016.

Spread (Return on Cap less WACC)

ii)   That SPV builds up roughly the same size book in the US's Bentham Capital LLC  & Bentham IMF Capital Canada as  it is closing in IMF - Bentham Australia, for 2017, 2018, 2019 and that growth thereafter equates with  2010-2016 growth in "sales" in IMF-Bentham internationally.

This is a conservative est. as based on the assumptions only ►AUD◄ $83 is drawn into operations. FCF (2017) $4.2 (2018) $20.1 (2019) 59.3

When the SPV has created allowance for up to USD $200  (AUD $ 266,67 m)

So be it.

iii) The Fortress SPV sees a Fortress LLC achieve a risk return in its Capped Priority Return and its Preferred Return that increases IMF-Bentham's overall WACC by at least 200 bp

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This is not a blueprint - rather so - a mull  sheet.  The DCF's / EVA can be rather flexible for considering variations & alternatives.

My first thought, is that IMF was in no need to go ahead with the SPV, ►IF◄ the growth in IMF-Bentham was no more than was to be expected. Sufficient CASH is on hand, to have got IMF over the Case Investment explosion (for want of a word) 5 quarters ago.

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Observations

IF IMF can maintain the Spread that once existed prior to 2015/2014, when a succession of cases were lost, appealed & withdrawn, substantial growth can be supported through internal finance, and there is no need for IMF - Bentham to compromise.  

The increase yield paid to Fortress, and that Fortress will demand in this SPV, will not be value accretive to shareholders, unless a vanguard of unexpected growth is to tumble down onto an unsuspecting IMF-Bentham!  

So though I show the SPV worth 25 ¢ per share, THE loss to the old IMF - Bentham exceeds the 25 ¢ !

This deal only makes sense on big, big growth in the SPV  

A sense of breathlessness & white knuckles, could make it all make sense.

Cheers - have a great weekend