Stack Capital Group Inc T.STCK

Trying to understand this...

[throwaway11]

So let me get this straight - this goes public, invests publics money in PE, then pays themselves 15% of the book value of the holdings annually, in cash? This means the value of those PE holdings are essentially decreasing every year, making it a much stronger tide for public float holders to swim against.

I can see why prospective investors might be hesitant here, even if the latest financial statements don't look so bad.

[Nstrat]

They are paid 1.5% of book value annually not 15%. They are entitled to 15% of the growth in Book value over the initial BV after 5 years. 

[throwaway11]

Thanks I got that cleared up, I am not so familar with public PE particularly how it's done in Canada, this still means the holdings need significantly more than 15% gain in value over the BV in order to make sense to buy this, no?

[throwaway11]

Just posting this out of curiosity - in this volatile tech valuation environment, let's say we get multiple consecutive high watermarks of only, say, 15% over the previous. Because their take is on the book value of the holdings, this means we public float holders would be right where we started? Just to be clear I'm not in this yet. I just pulled a lot of money out of something else and

[1northumberland]

The company is so poorly structured imo. Who ever bought this on the new issue has seen a destruction of value in share price. Insiders comtrol company and love collecting fees. I believe they want the share price to drop from disgruntled shareholders. This way insiders can buy ultra cheap. They announced a new NCIB, but I've seen nothing done. TSX should not allow these kind of