Why IMF interests me at these levels Pt II - potential upside, page-6

Thanks for that link Portfolio

Excellent !

Some of the clarifications for me;-

i) the distinction between (high flying) Juridica versus Burfurd. Particularly the relevance and distinction of the Private Equity v Public operation.

We have no insight yet into the SPV financial structure, but as Jimmy_C points to, and I now seem to believe is likely that the SPV is of the Juridica / private equity vehicle, through Fortress and not the traditional IMF-Bentham / Burfurd mould via public bond.

ii) IMF-Bentham has always struct me as rather pedestrian when it comes to their equity management & structuring!

I might be wrong. To me - their heart is more in the litigation side of their operation. I've felt, rightly or wrongly, that finance is an "oh well - must we" component to IMF-Bentham's operation.

Burfurd's shows this up starkly. IMF-Bentham needs to understand that the financial management of a litigation financier, must be first and is foremost, be that of a financier.

iii) Hence IMF-Bentham cannot be raising debt at 150 bp more than Burfurd (Its last FIG debt).

iv) Hence IMF-Bentham cannot be structured in a high tax regime, where Burfurd is taking advantage of tax structures open to multi national corporations.

v) Hence IMF-Bentham's debt structure, and recovery from Litigation Contracts in Progress is at the cost of IMF-Bentham's cost of debt.

vi) It must stop talking MOIC & ROIC, when IRR & WACC is crucial to timeous and marginal operation.

vii) It cannot go to the biggest equity markets in the world and come back with equity finance deal that probably equates with (as Christopher Bogart sets out) that of a private equity funder! IMF - Bentham must find it's feet here?


Are they to be lawyers, litigation funders, or into private equity?

Commitment to one of the three avenues is essential - for IMF-Bentham into the future.

IMF-Betham's capital structure is now a bastardised neither fish nor fowl.

viii) IMF_Bentham are already 'borrowing through the Fortress SPV' when they - as at the 30 December 2016 - are sitting on AUD $ 166 m pile of essentially dead cash & cash equivalents!

SRSLY?

This is simply absurd!