Metrica Partners AUM reaches a new high
Metrica Partners is pleased to announce that assets under management have today risen to a record high, equivalent to more than thirteen times the level at which Metrica started three years ago. ... more
June update: which market has the fastest growth in new deals?
Transaction volumes continue to trend at high levels across the region. The chart below shows deal announcements this year (annualised) compared with the average since 2006:
One market stands out in particular: ... more
Current trends in Asia-Pacific M&A
The figure below shows the cancellation / completion ratio of Asia-Pacific deals going back twenty years. The chart shows how this year has been a huge outlier, with the ratio moving well above two times, compared with a historical range rarely exceeding one. In other words, in 2020, more than two deals have been cancelled for every deal that has completed. This indicates the scale of the disruption in the M&A space this year.
M&A cancel / complete ratio (x) What does this imply for M&A investment returns for the rest of the year? We think they will be strongly positive for the following reasons: ... more
A perfect storm
- Earnings are falling precipitously. Acquirers are calling off deals by invoking Material Adverse Change (MAC) clauses. Many transactions have either broken or widened out to spreads of 30% to 70%.
- Even less-risky deals are seeing much wider spreads due to forced de-leveraging. For example, we saw annualised returns in Japan which have been around 2-3% for months blow out to 40%+ at one point.
The disruption in the M&A space has been more severe than during the GFC, as this time the correction has been stunningly abrupt. ... more
Dividend distribution tax and holding companies in India
A frequent topic of conversation was the upcoming abolition of Dividend Distribution Tax (DDT), which is significant for holding companies. ... more
Welcome Curtis Man
We are pleased to announce that Curtis Man is joining the team as an Executive Director in charge of investor relations and business development. ... more
The case for tailored relative value
The figure below shows is an 18-year chart of the MSCI AC Asia ex-Japan Growth and Value indices. Growth tracked Value very closely over the entire period up to 2017. Since then, Growth has significantly outperformed.
MSCI AC Asia Pacific ex-Japan Value and Growth indices, 2002 to present
Why is this? ... more
Metrica featured in the Hedge Fund Journal
The publication recently covered our CIO Damian L. Edwards’ presentation on event-driven opportunities in Asia Pacific. Please click the link to download the article. ... more
Welcome Sara Yuan
We are pleased to announce that Sara Yuan has joined the investment team. ... more
Aveo can unlock 70% upside by addressing its unique ownership structure
- Aveo is substantially undervalued because it has a foreign-listed corporate as its major shareholder, according to Metrica Partners
- Restructuring the relationship could attract more institutional investors and boost Aveo’s share price by up to 70%
- Aveo – a leading owner, operator and manager of retirement communities in Australia – is 22.7% owned by Malaysia-listed Mulpha International Bhd