Excellent. $23m raised over the minimum $18m sought. I'm fine with raising 7.4%, relatively covenant-lite debt to fund investment in legal matters with >20% IRRs.
IMF now have zero excuses to not hit their $123m FY18 commitment target. They have the people (the huge overhead, the new offices in the US & Asia etc.), and they should still have the cash even if there's a few big FY18 case losses (like, for example, Wivenhoe).
I dunno what i'm missing that the market is clearly seeing, but if they get that $120m out the door in FY18 (and there's now zero excuses not to) and it comes back ~2 years later at anything north of a 1.7x MOIC, with a ~$35m overhead, we're talking an FY20 EBIT north of $50m (even with assumed zero fees from the funds management business, which is very pessimistic). Ratchet that 1.7x MOIC to a 2.0x, and the FY20 EBIT goes to >$80m. The business' current EV is ~$225m, so even on the low end the stock is trading at ~4.5x FY20 EBIT; on more aggressive yet still reasonable assumptions, the stock is trading at a <3x FY20 EBIT.
IMF Price at posting:
$1.82 Sentiment: Buy Disclosure: Held
