A rumor partially verified We've all speculated that QTRH significantly overpaid for ETC. Especially since Brett didn't come anywhere close to his bonus targets.
Someone Suggested to look at Capital Southwest Q2 earnings presentation which was one of the debt and equity investors disclosed their returns on the ETC investment. See page 12. It was their best ROI.
https://ir.capitalsouthwest.com/static-files/e6e895a7-9081-4176-a8aa-490e45c13c22
Appears that Capital Southwest earned a 30% IRR in one year holding ETC. As the majority of that was a credit investment it implies that all the gains came from the small equity investment. It reinforces the rumor that Align Capital doubled their money in 12 months. And that $75 million of goodwill was indeed overpayment.
The question is - what will they overpay for next?