4/7/2023 0 Comments Ripple vs tetragon![]() Įdison is not an adviser or broker-dealer and does not provide investment advice. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.Įdison is authorised and regulated by the Financial Conduct Authority. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Tetragon sees room for further growth in AUM of TFG Asset Management and does not expect to float the business in the near term (which, however, remains its long-term intention).Ĭlick here to view the full report or here to sign up to receive research as it is published.Īll reports published by Edison are available to download free of charge from its websiteĪbout Edison: E dison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. Nevertheless, the current discount offers considerable downside protection to investors, who are also rewarded through dividends (4.1% yield on a last 12 months basis) and NAV-accretive share buybacks. The recent enforcement action of the US Securities and Exchange Commission (SEC) against Ripple Labs (7.3% of Tetragon's NAV) may add to this. This may at least partly come from its incentive fee structure (which also dampened the NAV TR in FY20), only non-voting shares being available to investors (which means Tetragon cannot enter LSE's premium segment) and TFG Asset Management's carrying value being based on private valuation. ![]() Still, its long-term performance remains intact with an average 13.7% NAV TR pa over the last 10 years.ĭespite the long-term NAV returns Tetragon demonstrated, its shares continue to trade at a wide discount of 63%, which is ahead of the already wide 10-year average of 43% and visibly higher than its peers. As a result, Tetragon posted a 7.6% return on equity, below its long-term target of 10-15%. ![]() Moreover, Polygon funds (the majority of Tetragon's exposure to hedge funds) delivered positive returns, but below broader equity markets. In contrast, Tetragon's CLO and real estate investments were a drag on FY20 performance. Its main value driver remains TFG Asset Management, which delivered a 24% return in FY20 as it continues to expand its assets under management (AUM, up by 10% in FY20 mainly assisted by Equitix). Tetragon Financial Group (Tetragon) reported a 9.5% NAV TR in FY20 in US dollar terms. In addition to its investment and collaborations, SBI also bought the Japanese exchange TaoTao in 2020.Edison issues outlook on Tetragon Financial Group (TFG) The Japanese giant has also since revealed plans for a cryptocurrency joint venture, partnering with crypto firms around the world. In fact, SBI Holdings came out in support of its co-collaborator during the lawsuit with Tetragon. Ripple Labs have had no such disputes with any other investors from that time. ![]() The funding round raised a total of $200 million, bringing Ripple’s value at the time to an estimated $10 billion. SBI Holdings, a Japanese financial company that was already in a joint venture with Ripple at the time (namely SBI Ripple Asia), also participated. Tetragon was among the leading investors in Ripple’s Series C round back in 2019. ![]() In doing so, it violated the United States Securities Act of 1933.Īt the time, Tetragon asked the Delaware Chancery Court to force Ripple Labs to call a halt to any transactions until it bought back $175 million worth of the shares it issued. The Securities and Exchange Commission (SEC) professed that, since 2013, Ripple had raised over $1 billion with the sale of XRP. The original allegations centered around a shareholder’s agreement between Tetragon and Ripple Labs, first entered in 2019. A lawsuit that Ripple Labs representatives called “ opportunistic.” The case goes back to January, where Tetragon, an investment management group based in the UK, sued Ripple to force it to buy back $175 million in shares. Litigation is a high-stakes game and Tetragon not only has to fulfill contractual obligations but pay two sets of lawyers.” Details of the case “I assume that the Ripple/Tetragon contract had a clause in it that the ‘prevailing party’ would receive attorney fees and costs from the other side. ![]()
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