1) On valuation for Vantage and DataBank, assuming 20x LTM EBITDA (which is low given DataBank recap is at more than 30x) * LTM EBITDA number which is $380m in 2022 * ownership of 12%. I get a total valaution of $912m. In your calculation, you have $651m (75+120+125+331). Is it becauase you are assuming a lower multiple?
2) On GP interest / warehouse investments, the company reported $449m (I got it from supplemental>>tab Other), but your number is much higher than this. May I know if I missed anything here?
Thank you for the kind words. 1) I’m using the book value, which is likely low, especially given the strong Q4 performance at DataBridge. 2). I pulled this from the footnotes in the 10K, which has the assets in one section and then the public company shorts a few notes down.
Excellent write up thank you. Perennially a little disappointed with the presentation of data in the supplements. FEEUM is so crucial to understanding the company and yet their presentation of it obscures more than clarifies. Also, why start showing DE if you are not going to calculate it in a way that allows comps to other alt managers? Continue to believe DBRG is an incredibly easy hire (career risk-wise) for any institutional allocator.
Regarding DE, I think their philosophy is why forecast exits, and the street doesn't give credit for carry. I don't mind them not providing that in there. They probably should have explained DE really well to the sell side analysts who are telco analysts and not alt asset manager analysts. They also could have made some very large footnotes as to the difference between their methodology and the standard conventions.
Great write up! I have two questions on the B/S.
1) On valuation for Vantage and DataBank, assuming 20x LTM EBITDA (which is low given DataBank recap is at more than 30x) * LTM EBITDA number which is $380m in 2022 * ownership of 12%. I get a total valaution of $912m. In your calculation, you have $651m (75+120+125+331). Is it becauase you are assuming a lower multiple?
2) On GP interest / warehouse investments, the company reported $449m (I got it from supplemental>>tab Other), but your number is much higher than this. May I know if I missed anything here?
Thanks!
Thank you for the kind words. 1) I’m using the book value, which is likely low, especially given the strong Q4 performance at DataBridge. 2). I pulled this from the footnotes in the 10K, which has the assets in one section and then the public company shorts a few notes down.
Super helpful! Thanks for sharing!
Excellent write up thank you. Perennially a little disappointed with the presentation of data in the supplements. FEEUM is so crucial to understanding the company and yet their presentation of it obscures more than clarifies. Also, why start showing DE if you are not going to calculate it in a way that allows comps to other alt managers? Continue to believe DBRG is an incredibly easy hire (career risk-wise) for any institutional allocator.
Regarding DE, I think their philosophy is why forecast exits, and the street doesn't give credit for carry. I don't mind them not providing that in there. They probably should have explained DE really well to the sell side analysts who are telco analysts and not alt asset manager analysts. They also could have made some very large footnotes as to the difference between their methodology and the standard conventions.
Also, thank you for the kind words.