FIG is reported as ownnig ~ 75% of NSM valued at ~ $2.3B. FIG has a Mk't cap of ~ $1.1B!
1. Are these figures right?
2. If so, why FIG's Mk't cap half of what it supposedly owns in another Co, without taking into account their other assets?
Because technically it isn't FIG that owns the 75% of NSM, but two of their private equity funds. Presumably those funds have pretty healthy IRR's - especially if the other investments made are up by anywhere near the amount FIG is.
Also seeing NSM with a mkt cap of $3.4B and FIG at $2.6B.
So what fraction of the NSM economics does FIG own? Good Question! Can't say without knowing purchase price - if someone out there has it, please improve my back of the envelope guesstimates. For simplicity, let's just assume the IPO price equals cost of buying and restructuring NSM plus enough to get over the hurdle rate. Then approximate economics to FIG through carried interest on the unsold piece: 20% x .75 x((37.78-15)/37.18)x$3.4= ~$310MM.
Interesting the beta of FIG on NSM is quite low at about 0.1 indicating the market hasn't really latched onto the connection. More curiously the beta of FIG to NCT is much higher at 0.6 despite the fact that FIG has sold its Newcastle holdings down to