Full Year 2026 Pacific Current Group Ltd Earnings Call

August 27, 2026

Operator 1: Hello, and thank you for standing by. My name is Lacey, and I will be your conference operator today. At this time, I would like to welcome everyone to the Pacific Current Group 2026 full year results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Michael Clarke, Managing Director. Please go ahead.

Operator: Hello, and thank you for standing by. My name is Lacey, and I will be your conference operator today. At this time, I would like to welcome everyone to the Pacific Current Group 2026 full year results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Michael Clarke, Managing Director. Please go ahead.

Speaker #2: Hello, and thank you for standing by. My name is Lacey, and I will be your conference operator today. At this time, I would like to welcome everyone to the Pacific Current Group 2026 Full-Year Results Conference Call.

Speaker #2: All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number 1 on your telephone keypad.

Speaker #2: If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Michael Clark, Managing Director.

Speaker #2: Please go ahead.

Speaker #3: Welcome to the Pacific Current Group for the PAC Investor Presentation call for the 2026 financial year. By way of introduction, my name is Michael Clark.

Michael Clarke: Welcome to the Pacific Current Group, or PAC, investor presentation call for the 2026 financial year. By way of introduction, my name is Michael Clarke, and I am the Managing Director of Pacific Current Group. I joined the board of PAC in February 2024 as a non-executive director, becoming acting Chief Executive in July 2024, and was appointed Managing Director in November 2025. I am joined on the call by Ron Patel, the CFO of Pacific Current Group. Ron joined PAC over 17 years ago. In our full-year update to shareholders in August last year, we highlighted that PAC was committed to taking actions that would unlock shareholder value and to report the progress made to achieve this goal. We are gratified to report that the momentum developed in the FY25 financial year has continued into this financial year. Today's call is in two parts.

Michael Clarke: Welcome to the Pacific Current Group or PAC Investor Presentation Call for the 2026 financial year. By way of introduction, my name is Michael Clarke and I am the Managing Director of Pacific Current Group. I joined the board of PAC in February 2024 as a non-executive director, becoming acting Chief Executive in July 2024, and was appointed Managing Director in November 2025. I am joined on the call by Ron Patel, the CFO of Pacific Current Group. Ron joined PAC over 17 years ago. In our full-year update to shareholders in August last year, we highlighted that PAC was committed to taking actions that would unlock shareholder value and to report the progress made to achieve this goal. We are gratified to report that the momentum developed in the FY25 financial year has continued into this financial year. Today's call is in two parts.

Speaker #3: I'm the Managing Director of Pacific Current Group. I joined the board of PAC in February 2024 as a non-executive director, became Acting Chief Executive in July 2024, and was appointed Managing Director in November 2025.

Speaker #3: I'm joined on the call by Ron Patel, the CFO of Pacific Current Group. Ron joined PAC over 17 years ago. In our full-year update to shareholders in August last year, we highlighted that PAC was committed to taking actions that would unlock shareholder value, and to reporting the progress made to achieve this goal.

Speaker #3: We are gratified to report that the momentum developed in the FY25 financial year has continued into this financial year. Today's call is in two parts.

Speaker #3: Ron and I will first take you through the full-year results for FY26. I will then speak to the separate announcement we launched this morning regarding the commencement of a strategic review for Pacific Current Group and our FY27 priorities.

Michael Clarke: Ron and I will first take you through the full-year results for FY26. I will then speak to the separate announcement we lodged this morning regarding the commencement of a strategic review for Pacific Current Group and our FY27 priorities, before we open the line for questions. Turning to slide 3 in the presentation pack. Again, Pacific Current Group is pleased to update on the company's results for the 12 months ending 30 June 2026. FY26 was another year of successful transition of PAC's business to a more simplified structure featuring increased transparency of asset values, successful capital management initiatives, eradication of debt, further material reduction in operating expenses, and a strengthened balance sheet, all aimed at enhancing shareholder value.

Speaker #3: Before we open the line for questions, turning to slide 3 in the presentation, PAC—again, Pacific Current Group—is pleased to update on the company's results.

Speaker #3: For the 12 months ending 30 June 2026, FY26 was another year of successful transition for PAC’s business to a more simplified structure—featuring increased transparency of asset values, successful capital management initiatives, eradication of debt, further material reduction in operating expenses, and a strengthened balance sheet.

Speaker #3: All aimed at enhancing shareholder value. Against this strategic backdrop, it is pleasing to report that our total shareholder return over both the past financial year and the past five financial years exceeded the broader share market by a meaningful amount.

Michael Clarke: Against this strategic backdrop, it is pleasing to report that total shareholder return over both the past financial year and the past five financial years exceeded the broader share market by meaningful amounts. Ron will speak more about that in his part of the presentation. Key elements of the result include declaring an underlying net profit after tax, or NPAT, of AUD 14.8 million for the period. This is down from AUD 26 million in the previous corresponding period on a reshaped earnings base following the sale of the Aether interest and the return of surplus capital to shareholders. The statutory result was a net loss after tax of AUD 1.5 million, compared with a profit of AUD 58.2 million in FY25, driven by non-cash fair value adjustments and the absence of the prior year's gains on sale. Ron will take you through that detail also shortly.

Speaker #3: Ron will speak more about that in his part of the presentation. Key elements of the result include declaring an underlying net profit after tax, or NTAP, of $14.8 million Australian dollars for the period.

Speaker #3: This is down from $26 million in the previous corresponding period, on a reshaped earnings base following the sale of the teak interest and the return of surplus capital to shareholders.

Speaker #3: The statutory result was a net loss after tax of $1.5 million, compared with a profit of $58.2 million in FY25. This was driven by non-cash fair value adjustments and the absence of the prior year's gains on sale.

Speaker #3: Ron will take you through that detail also shortly. Pacific Current has declared total dividends of 48 cents per share for the financial year, an increase of 12% over the previous corresponding period, and including the first franked dividends the company has paid since 2023.

Michael Clarke: Pacific Current has declared total dividends of AUD 0.48 per share for the financial year, an increase of 12% over the previous corresponding period and including the first franked dividends the company has paid since 2023. Declaring an increased partially franked dividend continues the capital management initiatives of the past two years, aimed at efficiently and effectively returning surplus capital to shareholders. Further, the implementation of cost-saving initiatives resulted in a 41% reduction in total overhead expenses compared to the previous corresponding period. We scope for further material cost reduction in FY27 and a further reduction in the number of ordinary shares on issue through the ongoing on-market share buyback. Due to capital management initiatives, asset sales during the period and related considerations, PAC's fair value estimate of net asset value increased to AUD 16.18 per share at 30 June.

Speaker #3: Declaring an increased, partially franked dividend continues the capital management initiatives of the past two years, aimed at efficiently and effectively returning surplus capital to shareholders.

Speaker #3: Further, the implementation of cost-saving initiatives resulted in a 41% reduction in total overhead expenses compared to the previous corresponding period, with scope for further material cost reduction in FY27 and a further reduction in the number of ordinary shares on issue through the ongoing on-market share buyback.

Speaker #3: Due to capital management initiatives, asset sales during the period, and related considerations, PAC's fair value estimate of net asset value increased to $16.18 per share at 30 June.

Speaker #3: This is up over 4% on the $15.51 per share estimate a year earlier. Over the past five years, fair value NAV per share has compounded at over 14% per annum, from $8.39 per share to $16.18 per share.

Michael Clarke: This is up over 4% on the AUD 15.51 per share estimate a year earlier. Over the past five years, fair value NAV per share has compounded at over 14% per annum, from AUD 8.39 per share to AUD 16.18 per share. Again, Ron will take you through those numbers in more detail shortly. Funds under management ended the year at AUD 26.4 billion, down from AUD 30 billion. The movement principally reflects the exit from Aether in June and a stronger Australian dollar, with three of the five continuing boutiques growing some in reporting currency over the year. Turning to activity now. It was another busy period, particularly for transaction activity, with the following portfolio of transactions completed. Firstly, the partial sale of Victory Park Capital.

Speaker #3: Again, Ron will take you through these numbers in more detail shortly. Funds under management ended the year at $26.4 billion Australian dollars, down from $30 billion Australian dollars.

Speaker #3: The movement principally reflects the exit from ETHA in June and a stronger Australian dollar, with three of the five continuing boutiques growing in reporting currency over the year.

Speaker #3: Turning to activity now, it was another busy period, particularly for transaction activity, with the following portfolio transactions completed: firstly, the partial sale of Victory Park Capital.

Speaker #3: In September 2025, PAC sold a portion of its interests—specifically a 2% equity stake in Victory Park Capital and a 0.8% interest in Victory Park Capital HOLCO—as well as future carried interest entitlements to CNO Financial Group.

Michael Clarke: In September 2025, PAC sold a portion of its interest, specifically 2% equity in Victory Park Capital and 0.8% interest in Victory Park Capital Holdco future carried interest entitlements to CNO Financial Group for AUD 8.1 million. Following the transaction, PAC's interest reduced to 9.2% equity, 18.6% future carry, and 24.9% existing carry. PAC received AUD 7.7 million net proceeds in October 2025. Secondly, full repayment of the senior secured debt facility. In October 2025, PAC fully repaid its senior secured debt facility with Washington H. Soul Pattinson. Total repayment of US$42.1 million included an US$0.8 million early repayment premium and US$0.3 million interest for October. The facility was settled using the US$43.5 million restricted deposit account, which Washington H. Soul Pattinson held security over. The on-market share buyback commenced. In October 2025, PAC announced an on-market share buyback of up to 2 million shares or 6.8% of issued capital, funded from existing cash reserves.

Speaker #3: For $8.1 million Australian dollars. Following the transaction, PAC's interests reduced to 9.2% equity, 18.6% future carry, and 24.9% existing carry. PAC received $7.7 million Australian dollars net proceeds in October 2025.

Speaker #3: Secondly, full repayment of the senior secured debt facility. In October 2025, PAC fully repaid its senior secured debt facility with WH sole patents. Total repayment of US dollars 42.1 million included a 0.8 million US dollar early repayment premium, and 0.3 million US dollars interest for October.

Speaker #3: The facility was settled using the US$43.5 million restricted deposit account, which WHSP held security over. The on-market share buyback commenced in October 2025.

Michael Clarke: The on-market share buyback commenced. In October 2025, PAC announced an on-market share buyback of up to 2 million shares or 6.8% of issued capital, funded from existing cash reserves. On 1 June, PAC increased the maximum number of shares bought back from 2 million shares to just over 2.6 million shares, approximately 8.6% of issued capital prior to the buyback, funded again from cash reserves. As at 30 June, PAC had repurchased over 2.2 million shares at a cost of AUD 22.9 million. As a result, shares on issue have declined by 7% during the period, from 30.2 million shares to 27.9 million shares. We also exited our holding in Janus Henderson Group. In November 2025, PAC sold its entire holding, generating US$9.4 million in proceeds. We continued deploying growth capital.

Speaker #3: PAC announced an on-market share buyback of up to 2 million shares, or 6.8% of issued capital, funded from existing cash reserves. On 1 June, PAC increased the maximum number of shares to be bought back from 2 million shares to just over 2.6 million shares, approximately 8.6% of issued capital, prior to the buyback, funded again from cash reserves.

Michael Clarke: On 1 June, PAC increased the maximum number of shares bought back from 2 million shares to just over 2.6 million shares, approximately 8.6% of issued capital prior to the buyback, funded again from cash reserves. As at 30 June, PAC had repurchased over 2.2 million shares at a cost of AUD 22.9 million. As a result, shares on issue have declined by 7% during the period, from 30.2 million shares to 27.9 million shares. We also exited our holding in Janus Henderson Group. In November 2025, PAC sold its entire holding, generating US$9.4 million in proceeds. We continued deploying growth capital. Between December and February, PAC agreed three new secured loan facilities, including an AUD 2 million loan with an affiliate of ROC Partners, a US$2.1 million facility with Northern Lights Alternative Advisors, and a US$25.1 million facility with Independent Financial Partners or IFP.

Speaker #3: As of 30 June, PAC had repurchased over 2.2 million shares at a cost of $22.9 million Australian dollars. As a result, shares on issue have declined by 7% during the period, from 30.2 million shares to 27.9 million shares.

Speaker #3: We also exited our holding in Janus Henderson Group in November of 2025. PAC sold its entire holding, generating US$9.4 million in proceeds.

Speaker #3: We continued deploying growth capital between December and February. PAC agreed on three new secured loan facilities, including a $2 million Australian loan as an affiliate of Rock Partners, a $2.1 million US facility with Northern Lights Alternative Advisors, and a $25.1 million US facility with Independent Financial Partners, or IFP, all bearing interest at between 10 and 11 percent per annum and maturing between 2028 and 2031.

Michael Clarke: Between December and February, PAC agreed three new secured loan facilities, including an AUD 2 million loan with an affiliate of ROC Partners, a US$2.1 million facility with Northern Lights Alternative Advisors, and a US$25.1 million facility with Independent Financial Partners or IFP.

Michael Clarke: All bearing interest at between 10% and 11% per annum and maturing between 2028 and 2031. As at 30 June, AUD 14.6 million was drawn across these facilities. The IFP facility particularly is a four-year bullet, currently drawn to US$8.2 million and is supporting IFP's recruiting and acquisition momentum. We also concluded the investment management agreement with an affiliate of GQG. In May, PAC concluded its two-year management agreement in accordance with its terms and assumed responsibility for investment management of its portfolio of assets. We have also begun the exit of Abacus Global Management. PAC commenced the sale through the financial year in its holding in Abacus Shares, realizing AUD 11.4 million during the period. We also finally exited from Aether. PAC sold its entire revenue share in Aether for US$1.8 million, together with its 25% stake in Aether's general partner during the period. Clearly a very busy time.

Speaker #3: As of 30 June, $14.6 million Australian dollars was drawn across these facilities. The IFP facility, in particular, is a four-year bullet, currently drawn to $8.2 million US dollars, and is supporting IFP's recruiting and acquisition momentum.

Speaker #3: We also concluded the investment management agreement with an affiliate of GQG. In May, PAC concluded its two-year management agreement in accordance with its terms and assumed responsibility for investment management of its portfolio of assets.

Speaker #3: We've also exited—we've begun the exit of Abacus Global Management. PAC commenced its sale through the financial year and is holding its holding in Abacus shares, realizing $11.4 million Australian dollars during the period.

Speaker #3: We also finally exited from ETHA. PAC sold its entire revenue share in ETHA for US $1.8 million, together with its 25% stake in ETHA's general partner during the period.

Speaker #3: Clearly, it's a very busy time. I'd now like to hand over to Ron to cover the financials for the year.

Michael Clarke: I would now like to hand over to Ron to cover financials for the year.

Speaker #2: Thank you, Michael. Turning to slide four in the presentation—PAC—FY26 reflects the reshaped earnings base that follows two years of planned boutique realizations.

Ron Patel: Thank you, Michael. Turning to slide 4 in the presentation pack. FY26 reflects the reshaped earnings base that follows two years of planned boutique realizations and the return of surplus capital to shareholders. Underlying net profit after tax was AUD 14.8 million, down 43% from AUD 26 million. Total underlying income of AUD 25.1 million was down 48%, with boutique income of AUD 7.1 million, reflecting the exits Michael has covered. Interest income of AUD 16.8 million is now 67% of underlying income and the largest single component of earnings. Total overheads fell 41% to AUD 9.4 million. Corporate overheads of AUD 5.4 million were down 21% following the cost reset. Interest expense fell from AUD 6.7 million to AUD 2.6 million after the October debt repayment, and the investment management fees were AUD 1.4 million. Interest income now covers corporate overheads more than three times over. Looking to FY27, both interest expense and investment management fees roll off entirely.

Speaker #2: And the return of surplus capital to shareholders. Underlying net profit after tax was $14.8 million, down 43% from $26 million. Total underlying income of $25.1 million was down 48%, with boutique income of $7.1 million reflecting the exit Michael has covered.

Speaker #2: Interest income of $16.8 million is now 67% of underlying income and the largest single component of earnings. Total overheads fell 41% to $9.4 million. Corporate overheads of $5.4 million were down 21% following the cost reset.

Speaker #2: Interest expense fell from $6.7 million to $2.6 million after the October debt repayment. The investment management fees were $1.4 million. Interest income now covers corporate overheads more than three times over.

Speaker #2: Looking to FY27, both interest expense and investment management fees roll off entirely. The debt facility is repaid and released, and the GQG investment management agreement concludes in May 2026.

Ron Patel: Looking to FY27, both interest expense and investment management fees roll off entirely. The debt facility is repaid and released, and the GQG investment management agreement concluded in May 2026. Underlying earnings per share of AUD 0.502 declined 10%, a much smaller fall than NPAT, supported by the 36.8% reduction in weighted average shares on issue from the buybacks. Cash conversion remained strong, with underlying pre-tax cash earnings of AUD 14.4 million, representing 91% of underlying profit before tax. The detailed schedule is included in the presentation. Total dividends for the year are AUD 0.48 per share. The fully franked AUD 0.20 interim dividend was paid in April, and the final dividend of AUD 0.28, franked to 17.5%, with a record date of 4 September and payment on 8 October. Turning to slide 5, alternate balance sheet.

Ron Patel: The debt facility is repaid and released, and the GQG investment management agreement concluded in May 2026. Underlying earnings per share of AUD 0.502 declined 10%, a much smaller fall than NPAT, supported by the 36.8% reduction in weighted average shares on issue from the buybacks. Cash conversion remained strong, with underlying pre-tax cash earnings of AUD 14.4 million, representing 91% of underlying profit before tax. The detailed schedule is included in the presentation. Total dividends for the year are AUD 0.48 per share. The fully franked AUD 0.20 interim dividend was paid in April, and the final dividend of AUD 0.28, franked to 17.5%, with a record date of 4 September and payment on 8 October. Turning to slide 5, alternate balance sheet. The alternate balance sheet presents PAC on a look-through basis, separating our corporate net assets from our investment exposures.

Speaker #2: Underlying earnings per share of 50.2 cents declined 10%, a much smaller fall than NPAT, supported by the 36.8% reduction in weighted average shares on issue from the buybacks.

Speaker #2: Cash conversion remained strong, with underlying pre-tax earned cash earnings of $14.4 million, representing 91% of underlying profit before tax. The detailed schedule is included in the presentation.

Speaker #2: Total dividends for the year are 48 cents per share. The fully franked 20-cent interim dividend was paid in April, and the final dividend of 28 cents, franked to 17.5%, has a record date of 4 September and will be paid on 8 October.

Speaker #2: Turning to slide five, alternate balance sheets. The alternate balance sheet presents PAC on a look-through basis, separating our corporate net assets from our investment exposures.

Ron Patel: The alternate balance sheet presents PAC on a look-through basis, separating our corporate net assets from our investment exposures. Corporate net assets increased to AUD 174.9 million from AUD 144.3 million at 30 June 2025. The WHSP debt facility and the restricted deposit debt secured have both left the balance sheet, and the deferred tax liability has almost halved. Cash and short-term deposits ended the year at AUD 157.7 million, up AUD 19.8 million. Realization proceeds and the release of the restricted deposits more than funded the AUD 60.5 million of debt repayment, AUD 22.9 million of buybacks, and AUD 14.4 million of dividends.

Ron Patel: Corporate net assets increased to AUD 174.9 million from AUD 144.3 million at 30 June 2025. The WHSP debt facility and the restricted deposit debt secured have both left the balance sheet, and the deferred tax liability has almost halved. Cash and short-term deposits ended the year at AUD 157.7 million, up AUD 19.8 million. Realization proceeds and the release of the restricted deposits more than funded the AUD 60.5 million of debt repayment, AUD 22.9 million of buybacks, and AUD 14.4 million of dividends. The reduction in assets held at fair value through profit and loss reflects the partial sale of Victory Park and the lower fair value of the retained interest. Financial assets of AUD 100.3 million comprise the Abacus bonds and shares, and AUD 15.4 million of loans to PAC boutiques. The Petershill deferred consideration was collected in full in May. PAC now carries no financial debt, and total liabilities are down 89% to AUD 8.6 million.

Speaker #2: Corporate net assets increased $274.9 million from $144.3 million at 30 June 2025. The WHSP debt facility and the restricted deposit tax secured against it have both left the balance sheet, and the deferred tax liability has almost halved.

Speaker #2: Cash and short-term deposits ended the year at 157.7 million dollars up 19.8 million dollars. Realization proceeds and the release of the release restricted deposits more than funded the 60.5 million dollars of debt repayment.

Speaker #2: $22.9 million of buybacks and $14.4 million of dividends. The reduction in assets held at fair value through profit and loss reflects the partial sale of Victory Park and the lower fair value of the retained interest.

Ron Patel: The reduction in assets held at fair value through profit and loss reflects the partial sale of Victory Park and the lower fair value of the retained interest. Financial assets of AUD 100.3 million comprise the Abacus bonds and shares, and AUD 15.4 million of loans to PAC boutiques. The Petershill deferred consideration was collected in full in May. PAC now carries no financial debt, and total liabilities are down 89% to AUD 8.6 million.

Speaker #2: Financial assets of $100.3 million comprise the Abacus bonds and shares, and $15.4 million of loans to PAC boutiques. The Peter Thiel deferred consideration was collected in full in May.

Speaker #2: PAC now carries no financial debt, and total liabilities are down 89% to $8.6 million. Turning to slide six, shareholder value. Statutory NAV at 30 June was $13.96 per share, and our fair value estimate of NAV was $16.18, up 4% on last year and a premium of $2.22, or 16%, to statutory NAV.

Ron Patel: Turning to slide 6, shareholder value. Statutory NAV at 30 June was AUD 13.96 per share, and our fair value estimate of NAV was AUD 16.18, up 4% on last year, and a premium of AUD 2.22 or 16% to statutory NAV. The accounting standards require different measurement bases across the portfolio. Several of our larger boutiques positions are carried at cost and can be written down but not up. This year's fair value uplift came largely from those boutiques held as associates. In total return terms, share price plus dividends, PAC delivered 10.4% in FY26, and 18.4% per annum over the 5 years to 30 June 2026, against 6.1% and 7.8% for the ASX 200. Turning to slide 7, fair value versus book value.

Speaker #2: The accounting standards require different measurement bases across the portfolio. Several of our larger boutique positions are carried at cost and can be written down, but not up.

Speaker #2: This year's fair value uplift came largely from those boutiques held as associates. In total return terms—share price plus dividends—PAC delivered 10.4% in FY26 and 18.4% per annum over the five years to 30 June 2026.

Speaker #2: Against 6.1% and 7.8% for the ASX 200. Turning to slide seven—fair value versus book value. As part of preparing the statutory accounts, we value every investment, both to test assets carried at cost for impairment and to set the fair value of assets measured at fair value.

Ron Patel: As part of preparing the statutory accounts, we value every investment, both to test assets carried at cost for impairment and to set the fair value of assets measured at fair value. These valuations follow the accounting standards. They are estimates, not the precise price at which an investment would change hands, and the methodology is set out in the presentation and financials. The notable moments this year. ROC fair value rose from AUD 37.2 million to AUD 60.1 million on a stronger growth outlook for the business. IFP rose from AUD 9.6 million to AUD 35.8 million, reflecting an improved growth trajectory that our debt facility is helping to fund. Victory Park reduced to AUD 44.3 million, reflecting slower fundraising and higher discount rates for private credit strategies together with the partial sale.

Speaker #2: These valuations follow the accounting standards. They are estimates, not the precise price at which an investment would change hands. The methodology is set out in the presentation and financials.

Speaker #2: The notable moments this year: ROC's fair value rose from $37.2 million to $60.1 million on a stronger growth outlook for the business. IFP rose from $9.6 million to $35.8 million, reflecting an improved growth trajectory that our debt facility is helping to fund.

Speaker #2: Victor has reduced to $44.3 million, reflecting slower fundraising and higher discount rates for private credit strategies, together with the partial sale. Estate increased $14.4 million on successful fundraising and improved carried interest expectations.

Ron Patel: Estate increased AUD 14.4 million on successful fundraising and improved carried interest expectations, and financial assets reflect the exit from Janus Henderson and higher values for the Abacus bonds and shares. Bringing it together, fair value net assets of AUD 452 million with corporate net assets, largely cash and stated after implied tax on the fair value uplift. Slide 8 summarizes the portfolio transactions Michael has already covered. With that, I will hand back to Michael for the strategic review and the FY26 outlook.

Speaker #2: And financial assets reflect the exit from Janus Henderson and higher values for the Abacus bonds and shares. Bringing it together, fair value net assets of $452 million, with corporate net assets largely cash and stated after implied tax on the fair value uplift.

Speaker #2: Slide eight summarizes the portfolio transactions that Michael has already covered. So with that, I will hand back to Michael for the strategic review and the FY26 outlook.

Speaker #1: Thank you, Ron. I want to now speak to the second announcement we launched this morning. Pacific Current has commenced a strategic review to explore options to further optimize value for shareholders.

Michael Clarke: Thank you, Ron. I want now to speak to the second announcement we lodged this morning. Pacific Current has commenced a strategic review to explore options to further optimize value for shareholders. In early 2024, PAC took the decision to transition from an active investor in boutique asset management firms to an owner of a portfolio of investment holdings, with management of those investments externalized for an interim period. Two years on, following the realizations and capital returns you have heard about today, the company's asset base is a combination of investments in asset managers, financial assets, and cash. Against that backdrop, the board has been considering how best to improve return on capital and optimize value for shareholders going forward.

Speaker #1: In early 2024, PAC took the decision to transition from an active investor in boutique asset management firms to an owner of a portfolio of investment holdings, with management of those investments externalized for an interim period.

Speaker #1: Two years on, following the realizations and capital returns you have heard about today, the company's asset base is a combination of investments in asset managers, financial assets, and cash.

Speaker #1: Against that backdrop, the board has been considering how best to improve return on capital and optimize value for shareholders going forward. Recently, the company received a non-binding indicative proposal from River Capital, an established Australian investment manager specializing in listed and private market assets with approximately $1.1 billion of assets under management.

Michael Clarke: Recently, the company received a non-binding indicative proposal from River Capital, an established Australian investment manager specializing in listed and private market assets with approximately AUD 1 billion of assets under management. The proposal contemplates Pacific Current acquiring River Capital for approximately AUD 80 million, with consideration of approximately 6.3 million Pacific Current shares, an implied valuation of AUD 13 per share, which would be subject to a two-year escrow period. Under the proposal, Pacific Current would evolve into an active listed equities and private markets investment manager focused on investing third-party money with the capability to deploy balance sheet capital as a co-investor on a case-by-case basis. Funds managed by River Capital currently hold approximately 10 million Pacific Current shares.

Speaker #1: The proposal contemplates Pacific Current acquiring River Capital for approximately $80 million Australian dollars, with consideration of approximately 6.3 million Pacific Current shares at an implied valuation of $13 per share.

Speaker #1: Which would be subject to a two-year escrow period. Another proposal: Pacific Current would evolve into an active listed equities and private markets investment manager, focused on investing third-party money, with the capability to deploy balance sheet capital as a co-investor on a case-by-case basis.

Speaker #1: Funds managed by River Capital currently hold approximately $10 million in Pacific Current shares. To broaden the shareholder base and increase free float, the proposal contemplates at least $6 million of those shares being sold down through a managed bookbuild at no less than $13 per share prior to completion of any acquisition.

Michael Clarke: To broaden the shareholder base and increase free float, the proposal contemplates at least 6 million of those shares being sold down through a managed book build at no less than AUD 13 per share prior to completion of any acquisition. The receipt of that proposal reinforced the board's view that this is an appropriate time to undertake a comprehensive, formal review of the company's strategic alternatives. The review will consider three potential paths. First, progressing the River Capital proposal. Secondly, the sale of Pacific Current Group. Finally, delisting the company from the ASX and undertaking an orderly realization of its holdings. The board has made no decision regarding the River Capital proposal or any other alternative other than to consider them.

Speaker #1: The receipt of that proposal reinforced the Board's view that this is an appropriate time to undertake a comprehensive, formal review of the company's strategic alternatives.

Speaker #1: The review will consider three potential paths: first, progressing the River Capital proposal; second, the sale of Pacific Current Group; and finally, delisting the company from the ASX and undertaking an orderly realization of its holdings.

Speaker #1: The Board has made no decision regarding the River Capital proposal or any other alternative, other than to consider them. Any transaction with River Capital will be subject to satisfactory due diligence and an independent expert's report.

Michael Clarke: Any transaction with River Capital will be subject to satisfactory due diligence, an independent expert's report, the approval of Pacific Current shareholders, excluding shares held by funds managed by River Capital and any of its associates, the sell-down of the River Capital fund shares at no less than AUD 13 per share, and any necessary regulatory approvals. There is no certainty that any transaction will be progressed or will eventuate. To assist with the review, we have appointed Flagstar Bank as financial advisor and Ashurst Perkins Coie as legal advisor. We anticipate providing an update on the strategic review at or before our annual general meeting, and we will keep the market informed of any material developments in accordance with our continuous disclosure obligations. Finally, turning to slide 10 in the pack.

Speaker #1: The approval of Pacific Current shareholders, excluding shares held by funds managed by River Capital and any of its associates, will allow for the sell-down of the River Capital fund shares at no less than $13 per share, subject to any necessary regulatory approvals.

Speaker #1: There is no certainty that any transaction will be progressed or will eventuate. To assist with the review, we have appointed Flagstaff Partners as financial advisor and Ashurst Perkins Coie as legal advisor.

Speaker #1: We anticipate providing an update on the strategic review at or before our Annual General Meeting, and we will keep the market informed of any material developments in accordance with our continuous disclosure obligations.

Speaker #1: Finally, turning to slide 10 in the PAC, I'm looking forward to the 2027 financial year. Pacific Current management expects to maintain the strong momentum that we have built and have been discussing in the past two financial years by continuing to focus on executing a clear and disciplined plan.

Michael Clarke: Looking forward to the 2027 financial year, Pacific Current management expects to maintain the strong momentum that we have built and been discussing in the past two financial years by continuing to focus on executing a clear and disciplined plan. The FY27 priorities describe how we will run the business day to day while the strategic review is underway. They sit alongside the review I have just taken you through. The focus on FY27 will continue to be on executing the following four key initiatives. Firstly, preserve capital optionality by maintaining balance sheet strength with capital deployment opportunities assessed in light of the strategic review, and growth opportunities assessed against the return profile of buybacks and shareholder distributions. Secondly, continuing to return capital to shareholders by funding dividends from underlying cash earnings, with the on-market buyback and further returns assessed, again, alongside the strategic review.

Speaker #1: Therefore, 2027 priorities describe how we will run the business day to day while the strategic review is underway. They sit alongside the review I've just taken you through.

Speaker #1: The focus in FY27 will continue to be on executing the following four key initiatives. Firstly, preserve capital optionality by maintaining balance sheet strength, with capital deployment opportunities assessed in light of the strategic review.

Speaker #1: And growth opportunities assessed against the return profile of buybacks and shareholder distributions. Secondly, continuing to return capital to shareholders by funding dividends from underlying cash earnings, with the on-market buyback and further returns assessed again alongside the strategic review.

Speaker #1: Thirdly, continued expense reduction by maintaining disciplined cost management to support margin stability and capital efficiency, and to target further material expense reduction in FY27 as interest costs and investment management fees roll off.

Michael Clarke: Thirdly, continued expense reduction by maintaining disciplined cost management to support margin stability and capital efficiency, and to target further material expense reduction in FY27 as interest costs and investment management fees roll off. Finally, to sharpen the operating model, embedding the governance and structural changes now in place to speed decision-making and reduce complexity. In conclusion, FY26 delivered what we set out to achieve. A simpler portfolio, the elimination of debt, a materially lower cost base, and significant capital return to shareholders. The strategic review is the logical next step on that path. Testing in a disciplined and structured way how the value of this business is best delivered to shareholders. We would like to thank our employees and the PAC board, both past and present, for their work over this year and in previous years. I would now like to answer any questions that you may have.

Speaker #1: And finally, to sharpen the operating model, I'm betting the governance and structural changes now in place speed decision-making and reduce complexity. In conclusion, FY26 delivered what we set out to achieve.

Speaker #1: A simpler portfolio, the elimination of debt, a materially lower cost base, and significant capital return to shareholders—the strategic review is the logical next step on that path.

Speaker #1: Testing and a disciplined, structured approach is the way the value of this business is best delivered to shareholders. We would like to thank our employees and the PAC board, both past and present, for their work over this year and in previous years.

Speaker #1: I would now like to answer any questions that you may have. Thank you.

Michael Clarke: Thank you.

Speaker #2: At this time, I would like to remind everyone that in order to ask a question, please press star one on your telephone keypad. We will pause for a moment to compile the Q&A roster.

Operator 2: At this time, I would like to remind everyone, in order to ask a question, please press star one on your telephone keypad. We will pause for a moment to compile the Q&A roster. Your first question comes from the line of Lachlan Rogers with 115 Capital. Please go ahead.

Operator: At this time, I would like to remind everyone, in order to ask a question, please press star one on your telephone keypad. We will pause for a moment to compile the Q&A roster. Your first question comes from the line of Lachlan Rogers with 115 Capital. Please go ahead.

Speaker #2: Your first question comes from the line of Lachlan Rogers with 115 Capital. Please go ahead.

Speaker #3: Hi, guys. Are you able to give any KPIs or more detail on the drivers behind the valuation uplift for Rock Partners?

Lachlan Rogers: Hi, guys. Are you able to give any KPIs or more detail on the drivers behind the valuation uplift for ROC Partners?

Speaker #4: Hi Lachlan, this is John. So, under Rock Partners, they had a bit of a positive fundraising outlook, and we revisited that model in a bit more detail. Just based on the outlook for where the next five years of cash flows sit, we believe that there is an uplift in the fair value.

Ron Patel: Hi, Lachlan, this is Ron. On the ROC Partners, they had a bit of a positive fundraising outlook, and we revisited that model in a bit more detail. Just based on the outlook for where the next five years of cash flows sit, we believe that there is an uplift in the fair value.

Speaker #3: Right, okay. And my second question was, is there any market for selling the Abacus bonds into, or are you just planning to hold those until maturity?

Lachlan Rogers: Right. Okay. My second question was, is there any market for selling the Abacus bonds into, or are you just planning to hold those until maturity?

Michael Clarke: Yeah, look, I can pick up on that and just make a comment about ROC as well. Basically, in the last couple of years, we have moved all the valuations into a very consistent framework. Some of the uplift in ROC also reflects that same approach being applied to all of our portfolio investments. So it is a combination of both the potential outlook for ROC, but also a consistent way that we value all of the portfolio assets. The bonds, the Abacus bonds, it all depends on what price could be achieved, to be frank. We monitor that regularly. They trade a little bit over. To be very clear too, the bonds we hold are not the equivalent bond to the listed bond that many people follow. It is trading roughly at a little bit over AUD 25 and change. So we effectively monitor that.

Speaker #1: Yeah. Look, I can pick up on that and just make a comment about Rock as well. I mean, basically, in the last couple of years, we've moved all the valuations into a very consistent framework.

Speaker #1: And some of the uplift in Rock also reflects that same approach being applied to all of our portfolio investments. So it's a combination of both the potential outlook for Rock, but also a consistent way that we value all of the portfolio assets.

Speaker #1: The bonds, the Abacus bonds—I mean, it all depends on what price could be achieved, to be frank. We monitor that regularly. They trade a little bit over. To be very clear too, the bonds we hold are not the equivalent bond to the listed bond that many people follow.

Speaker #1: It's trading roughly at a little bit over $25 and change, so we effectively monitor that. The only way we would look to exit those bonds prior to maturity would be if there was a sufficient premium over that $25 face value in the period leading up to maturity, which is in 2028.

Michael Clarke: The only way we would look to exit those bonds prior to maturity would be if there was a sufficient premium over that AUD 25 face value in the period leading up to maturity, which is in 2028.

Speaker #3: Right. Okay, that's all from me. Thanks, guys.

Lachlan Rogers: Right. Okay. That is all from me. Thanks, guys.

Ron Patel: Cheers.

Speaker #1: Cheers.

Speaker #2: Your next question comes from the line of Greg Hoffman with Hoffman Super Fund. Please go ahead.

Operator 2: Your next question comes from the line of Greg Hoffman with Hoffman Superfund. Please go ahead.

Operator: Your next question comes from the line of Greg Hoffman with Hoffman Superfund. Please go ahead.

Speaker #5: Hi there. Just in relation to the non-binding proposal, just trying to wrap my head around that. At the $16.13 fair value, multiplied by the 6.3 million shares that are proposed as consideration, am I wrong in saying that that's really valuing River at $100 million?

Greg Hoffman: Hi there. Just in relation to the non-binding proposal, just trying to wrap my head around that. At the AUD 16.13 fair value multiplied by the 6.3 million shares that are proposed as consideration, am I wrong in saying that that's really valuing River at AUD 100 million, and so therefore the board would have to believe that River's worth substantially more than AUD 100 million before considering that transaction to be in shareholders' interests? Or have I gone wrong in my logic somewhere?

Speaker #5: And so, therefore, the board would have to believe that River's worth is substantially more than $100 million before considering that transaction to be in the shareholders' interests, or have I gone wrong in my logic somewhere?

Michael Clarke: Greg, sure. Look, right at the moment, it is very early. We received that proposal from River only a little bit earlier in this month, August. We're still going through that. We're only in the process of appointing advisors at the moment. We declare a fair value NAV for the company, which effectively is the sum of the asset value at this moment in time. There is no allowance for the cost of running the company or any future potential change. That's a moment-in-time valuation based, again, on that consistent valuation framework that we apply. Of course, there's a large element of that valuation is now effectively cash and short-term securities. It's between AUD 8 and AUD 9 a share, if I remember. We haven't made any determinations about the value of the River Capital proposal. That is yet to come.

Speaker #1: Greg, sure. Look, at the moment, it is very early. We received that proposal from River only a little bit earlier this month, in August.

Speaker #1: So we're still going through that. We're only in the process of appointing advisors at the moment. We declare a fair value now for the company, which effectively is the sum of the asset value at this moment in time.

Speaker #1: So there is no allowance for the cost of running the company or any future potential change. So that's a moment-in-time valuation, based again on that consistent valuation framework that we apply.

Speaker #1: And, of course, a large element of that valuation is now effectively cash and short-term securities. It's between $8 and $9 a share, remember?

Speaker #1: So we haven't made any determinations about the value of the River Capital proposal. That is yet to come. We will keep the market informed as we move through analysis, again supported by our advisers, throughout that proposal.

Michael Clarke: We will keep the market informed as we move through analysis, again, supported by our advisors through that proposal. But the actual numbers, you can do the math. I mean, the AUD 16 and just a little at AUD 16.18, the fair value NAV, again, to be very clear, is effectively the value if you sold all of the assets of the company today at their fair value without any sort of spread. Just to be clear on what that means. If you look back on the history of the company share price, it's consistently traded below that. We are working to close that gap, obviously, and the initiatives that the board is considering, including the River Capital proposal, would all be aimed at maximizing that value towards AUD 16.18 a share.

Speaker #1: But the actual numbers, you can do the math. And I mean, the $16 and just a little $16.18, the fair value now again to be very clear is effectively the value if you sold all of the assets of the company today at their fair value without any sort of spread.

Speaker #1: So just to be clear on what that means, I mean, if you look back in the history of the company's share price, it's consistently traded below that.

Speaker #1: We are working to close that gap, obviously, and the initiatives that the Board is considering, including the River Capital proposal, would all be aimed at maximizing that value towards $16.18 a share.

Speaker #5: Thank you. Just on—yeah, it does. But just on that last point you said: Yes, the stock market has consistently valued it below that, but is it fair to say that, on balance, the corporate transactions that you've undertaken, your fair value has been pretty close to the mark, or even slightly below the mark?

Greg Hoffman: Thank you.

Greg Hoffman: Thank you.[crosstalk]

Michael Clarke: Does that help?

Greg Hoffman: Yeah, it does. But just on that last point you said, yes, the stock market has consistently valued it below that. But is it fair to say that on balance, the corporate transactions that you have undertaken, your fair value has been pretty close to the mark or even slightly below the mark? The board's history of valuing its own assets, as evidenced by capital markets transactions, not the share price, is pretty good. Is that fair to say?

Speaker #5: The board's history of valuing its own assets, as evidenced by capital markets transactions—not the share price—is pretty good. Is that fair to say?

Michael Clarke: Well, yeah, that is a fair comment. Over the last, I have been involved for just under three years, really through a period of quite a number of transactions, and effectively, virtually all those transactions were undertaken at either close to or above the fair value. So, the valuation approach we take, it is designed to be rigorous, to be supportable. We are not trying to overstate or understate the value. It is a consistent approach that we follow, and we detail the methodology in the notes with the results. Again, we have looked at that again in the last year or so. We have reviewed all of that again to confirm our confidence in that and to confirm the veracity of our approach. So, you are right.

Speaker #1: Look, that's a fair comment. I mean, over the last year—I've been involved for just under three years—really through a period of quite a number of transactions.

Speaker #1: And I mean, effectively, virtually all those transactions were undertaken at either close to or above the fair value. So, look, the valuation approach we take is—it's designed to be rigorous.

Speaker #1: To be supportable, we're not trying to overstate or understate the value. It is a consistent approach that we follow, and we detail the methodology in the notes with the results.

Speaker #1: And again, we've looked at that again in the last year or so. We've reviewed all of that again to confirm our confidence in that and to confirm the veracity of our approach.

Speaker #1: So you're right. I think, as it's turned out in terms of transactions—and there have been fewer than 10, but more than a couple—we've basically achieved fair value or above.

Michael Clarke: I think as it has turned out in terms of transactions, and there has been fewer than 10, but more than a couple, we have basically achieved fair value or above.

Greg Hoffman: Yep

Speaker #1: In the transactions we've undertaken.

Michael Clarke: in the transactions we've undertaken.

Speaker #5: And just to tie those two threads together, if we can assume that $8 or $9 of cash and short-term investments is money good, is 100 cents on the dollar, that could be returned to shareholders in an equal-access manner.

Greg Hoffman: Just to tie those two threads together. If we can assume that AUD 8 or AUD 9 of cash and short-term investments is money good, is 100 cents on the dollar, that could be returned to shareholders in an equal access manner. We're then talking about a AUD 7 gap to your fair value or an AUD 8 gap. At a AUD 13 price, that AUD 3 discount is basically all attributable to the AUD 7 of assets. It's a huge discount to the quality boutique part of the portfolio. Is that reasonable to characterize it that way?

Speaker #5: We're then talking about a $7 gap to your fair value, or an $8 gap. And at a $13 price, that $3 discount is basically all attributable to the $7 of assets.

Speaker #5: It's a huge discount to the quality boutique part of the portfolio. Is that reasonable to characterize it that way?

Michael Clarke: Look, I think characterizing it as a huge discount is a bit of a step. Again, you've got to think about that that's, again, a moment-in-time valuation. As an ongoing concern, you would start at AUD 16 and change and deduct AUD 1 to AUD 2 a share to run the company year in, year out. There'd be some allowance for that. So you've got to be very careful. The AUD 16 valuation is, we provide that to indicate a moment-in-time valuation, the Fair Value NAV, as we call it. In terms of realized transactions, the share price over time has traded a little bit above AUD 12 after the equal access off-market buyback.

Speaker #1: I think characterizing it as a huge discount is a bit of a stretch. Again, you’ve got to think about the fact that that's, again, a moment-in-time valuation.

Speaker #1: You would have to, as an ongoing concern, start at $16 and change, and deduct $1 to $2 a share to run the company.

Speaker #1: Year in, year out, there'd be some allowance for that. So you've got to be very careful. The $16 valuation is—we provide that to indicate a moment-in-time valuation, the fair value now, as we call it.

Speaker #1: In terms of realized transactions, the share price over time has traded a little bit above $12 after the equal access off-market buyback. But it is currently trading a little bit under $12 at the moment.

Michael Clarke: It's currently trading a little bit under AUD 12 at the moment. That's the history of the company. That's the highest price the shares have ever traded at over its long history. So, I think you've got to look at all of those factors. You look at the valuation, you look at the market, you look at the market interpretation of it, and also liquidity in the share. I'm sure you probably noticed, the shares are not that liquid. So saying that the price reflects all of these factors efficiently is a bit of a leap, given that volume per day can be anything from nought shares trade to the low tens of thousands. So all of these factors are relevant, which lead to the strategic review, the board's-

Speaker #1: I mean, the history of the company—that's the highest price the shares have ever traded at over its long history. So I think you've got to look at all of those factors.

Speaker #1: You look at the valuation, you look at the market, you look at the market interpretation of it, and also liquidity in the share. I mean, I'm sure you probably noticed the shares are not that liquid.

Speaker #1: So, saying that the price reflects all of these factors efficiently is a bit of a leap, given that volume per day can be anything from nought shares traded to the low tens of thousands.

Speaker #1: So all of these factors are relevant, which led to the strategic review. The board's move to consider that. But they're all very good points you're raising.

Greg Hoffman: Yeah

Michael Clarke: movement to consider that. They are all very good points you are raising.

Speaker #5: Okay. And so obviously, part of the strategic review is saying, well, instead of potentially doing a deal for a large block of stock at $13 and then morphing the vehicle into something quite different, it's quite reasonable to sit down and say, "Okay, we think we're worth $16, more than half of that's already liquid."

Greg Hoffman: Okay. So obviously part of the strategic review is saying, well, instead of potentially doing a deal for a large block of stock at AUD 13 and then morphing the vehicle into something quite different, it is quite reasonable to sit down and say, "Okay, we think we are worth AUD 16." More than half of that is already liquid. The other half, we are confident. We have got a history of realizing our investments in a corporate setting at fair value. We have got to look at doing this thing ourselves at dismantling it or at-

Speaker #5: The other half, we're confident we've got a history of realizing our investments in a corporate setting at fair value. We've got to look at doing this thing ourselves—at dismantling, or at...

Speaker #1: Well, we'll look at all that. Yeah, we'll look at all those factors. We'll look at all of those, and hence the three elements of strategic review.

Michael Clarke: Yeah, we look at all those factors. We look at all of those, and hence the three elements of the strategic review. We highlight the proposal from River Capital because we have just received that, and we want to make sure the market is fully informed, aware of what the board's thinking. You will note there is the other two elements. We are saying that all of this work in the last two years, if you look at the results, you will see the returns have been quite strong, actually, over, as we said, the past year and five years. Going forward, the bulk of our portfolio is cash.

Speaker #1: We highlight the proposal from River Capital because we've just received that, and we want to make sure the market is fully informed of where and what the board's thinking is.

Speaker #1: But you'll note there's the other two elements. The sale of that—we're saying that all of this work in the last two years, if you look at the results, you'll see the returns have been quite strong, actually, over those, we said, the past year and five years.

Speaker #1: But going forward, the bulk of our portfolio was cash. So, clearly, maintaining that level of returns is difficult.

Michael Clarke: Clearly maintaining that level of returns is difficult.

Speaker #5: But you did a large off-market buyback, which effectively intensifies the remaining shareholders' interest in those strongly performing assets. That is an option any day of the week for you to do something like that, isn't it?

Greg Hoffman: You did a large off-market buyback, which effectively intensifies the remaining shareholder's interest in those strongly performing assets. That is an option any day of the week for you to do something like that, isn't it?

Speaker #1: Oh, no, that was a very long-considered action by the board, again, to return value to shareholders. Again, the shares—I don't think they ever traded at $12—to get a judgment was made.

Michael Clarke: Well, no, that was a long-considered action by the board, again, to return value to shareholders. Again, the shares, I do not think it ever traded at AUD 12. Again, a judgment was made then.

Michael Clarke: Well, no, that was a long-considered action by the board, again, to return value to shareholders. Again, the shares, I do not think it ever traded at AUD 12. [crosstalk] Again, a judgment was made then.

Speaker #5: So you're saying it'll be, sorry.

Greg Hoffman: What I am saying is you are saying it will be. Sorry.

Michael Clarke: Sorry. There was a judgment made then between what is the right price for a remaining shareholder and an exiting shareholder to create a level of fairness. To be frank, that was a judgment based on advisors and input that the board made. AUD 12 at the time, the Fair Value NAV was well below where we are now at that time. It was back in FY24. That was a judgment the board made around all of these factors I have been talking about between, again, then what was fair for exiting shareholders and continuing shareholders. That was the board's assessment. It was a very successful off-market transaction back then.

Speaker #1: Sorry. There was a judgment made then between what is the right price for a remaining shareholder and an exiting shareholder, to create a level of fairness.

Speaker #1: And to be frank, that was a judgment based on advisors and input that the Board made. And $12 at the time, the fair value then, was well below where we are now.

Speaker #1: At that time—it was sort of back in FY24—that was a judgment the Board made around all of these factors I’ve been talking about between, again, what was fair for exiting shareholders and continuing shareholders.

Speaker #1: That was the board's assessment, and it was a very successful off-market.

Speaker #5: I agree. Sorry, don't get me wrong. I'm saying that was a good piece of capital management, and that this kind of capital management is available to you again.

Greg Hoffman: Very sorry. Don't get me wrong. I'm saying that was a good piece of capital management and that that piece of capital management is open to you again. If you're saying it's hard to replicate returns when so much of the portfolio is cash, it's easy to translate that cash into an intensified interest into your quality boutiques by doing another large off-market buyback.

Greg Hoffman: [crosstalk] Very sorry. Don't get me wrong. I'm saying that was a good piece of capital management and that that piece of capital management is open to you again. If you're saying it's hard to replicate returns when so much of the portfolio is cash, it's easy to translate that cash into an intensified interest into your quality boutiques by doing another large off-market buyback.

Speaker #5: If you're saying it's hard to replicate returns when so much of the portfolio is cash, it's easy to translate that cash into an intensified interest in your quality boutiques by doing another large off-market buyback.

Speaker #1: Yeah, sorry, I might have misinterpreted your question, too, as well. Yeah, the board will consider all of that. I mean, we'll always consider on-market and off-market buybacks.

Michael Clarke: Yeah, sorry. I might have misinterpreted your question, too, as well. Yeah, the board will consider all of that. I mean, we'll always consider on-market and off-market buybacks, whatever we feel is the most efficient way to return capital. Yes, that will be part of the considerations going forward.

Speaker #1: Whatever we feel is the most efficient way to return capital. So yes, that will be part of the considerations going forward.

Speaker #5: Okay. Well, I'll just commend you on your job so far in realizing value in the corporate markets for your assets and past capital management.

Greg Hoffman: Well, I'll just commend you on your job so far in realizing value in the corporate markets for your assets and the past capital management. I think it's been great, and I hope the board, I'm sure the board will work through the strategic review and deliver value for all shareholders.

Speaker #5: I think it's been great, and I hope the board—I’m sure the board—will work through the strategic review and deliver value for all shareholders.

Speaker #1: Thanks, Greg. Appreciate your comments.

Michael Clarke: Thanks, Greg. Appreciate the comments.

Speaker #2: Again, if you would like to ask a question, please press star one. There are no further questions at this time. You have another question from Greg Hoffman.

Operator 2: Again, if you would like to ask a question, please press star one. There are no further questions at this time. You have another question from Greg Hoffman. Sir, your line is open.

Operator: Again, if you would like to ask a question, please press star one. There are no further questions at this time. You have another question from Greg Hoffman. Sir, your line is open.

Speaker #2: Sorry, your line is open.

Speaker #5: Sorry, I just want to let other people have a question bit. In relation to this non-binding offer, would any shares acquired by River Principals through the book build be subject to escrow, or would that only apply to the considerations here?

Greg Hoffman: Sorry, I just wanted to let other people have a question. But in relation to this non-binding offer, would any top shares acquired by River Capital principals through the book build be subject to escrow, or would that only apply to the consideration shares?

Michael Clarke: Again, it is very early days, and we would need to really work through this, obviously, with the River Capital principals. But my understanding is that they would probably apply. That any increase in stakes or change in stakes would be subject to the escrow. But again, early days, Greg, and we will update the market under the continuous disclosure requirements as we work through that proposal and understand it in more detail.

Speaker #1: Again, it's very early days, and we'd need to really work through this, obviously, with the River Capital principals. But my understanding is that they would probably apply.

Speaker #1: That any increase in stakes or change in stakes would be subject to the escrow. But again, early days. Greg, and we will update the market under the required continuous disclosure requirements as we sort of work through that proposal.

Speaker #1: And understand it in more detail.

Speaker #5: And would there be a maximum percentage that River Principals and their associates would be committed to acquire through that book build?

Greg Hoffman: Would there be a maximum percentage that River Capital principals and their associates would be committed to acquire through that book build?

Speaker #1: Well, I mean, we'd all be bound by all of the various rules around majority shareholder issues. Clearly, it is a very complicated transaction.

Michael Clarke: Well, we would all be bound by all of the various rules around majority shareholder issues. Clearly, it is a very complicated transaction, what we have seen to date, involving movements of shares through time. But clearly, we would need to be extremely mindful of the takeover provisions and all of the requirements around that. And so would River Capital need to be very mindful of that.

Speaker #1: What we've seen to date involves movements of shares through time. But clearly, we would need to be extremely mindful of the takeover provisions and all of the requirements around that.

Speaker #1: And so, would River Capital need to be very mindful of that?

Speaker #5: Yeah, yeah. I imagine that all of that is potentially fraud if it's not handled in the right way. Okay, thank you.

Greg Hoffman: Yeah. I imagine that all of that is potentially flawed if it is not handled in the right way. Okay. Thank you.

Michael Clarke: Cheers.

Speaker #1: Cheers.

Speaker #2: There are no further questions at this time. I would like to turn the call back over to Michael Clark for closing remarks.

Operator 2: There are no further questions at this time. I would like to turn the call back over to Michael Clarke for closing remarks.

Operator: There are no further questions at this time. I would like to turn the call back over to Michael Clarke for closing remarks.

Michael Clarke: Look, thank you all for joining the call. We appreciate your time today. Also thank you for the questions. It was great to hear or to engage actively with shareholders. Of course, we are available for briefings for shareholders over the next few weeks. We have got a few being scheduled, so very happy to also do that. And thanks again for your time.

Speaker #1: Look, thank you all for joining the call. We appreciate your time today. And also, thank you for the questions. It was great to hear from you and to engage actively with shareholders.

Speaker #1: Of course, we are available for briefings for shareholders over the next few weeks. We've got a few meetings scheduled, so we're very happy to also do that.

Speaker #1: And thanks again for your time.

Operator 2: This concludes today's call. You may now disconnect.

Operator: This concludes today's call. You may now disconnect.