sisu and there investors (1 Viewer)

[ICHAN]

This may have been covered along somewhere in all the sisu threads don't know.
If someone wants to buy sisu or if they decide to go, would they not have to put this to the people who invested the money in the first place?

So let's say they decided enough was enough would they not have to get permission from the investors.
If there is a takeover would they not want all monies owing to them straight away what ever that maybe because the investors want there money back?
I realise that an investment either get's you money or you lose money, but could the investors say well actually we do not want to sell yet and want sisu to carry on gambling so to speak with trying to make them money in the long run?
I may well be way of the mark as far as this goes and any clarity would be great.

 

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[shmmeee]

Well yeah SISU would have to make the call regarding whether they stick or twist so to speak.

The thing I can't see is the plan being to earn their money back. There's no way I can see this club making 7-10m a season profit with no investment over the next 3-4 years.

That being a given the question isn't will they sell but when will they. As long as they think a better deal might be coming in a year or two the longer they'll stick around. Hoffman (or whoever) has the job of putting a bid together that makes it worth their while now.

 

[ccfcway]

THEIR investors

 

[ICHAN]

Thanks Shmmeee for the reply and not an elocution lesson.
So basically they are answerable to their investors on what to accept or weather to sell in the first place and when to sell.
So although the £1 to buy the club of sisu (don't know how that works) maybe acceptable their investors may want the loan money also before selling, or am I going off the track abit?

 

[SympatheticSaint]

Dude,

there - "The chicken is over there." (adverb of place)

there - "There is a chicken over there." (introductory subject... adverb of place)

their - "The children licked their lollies" (weak possessive pronoun in the plural)

Come on, just because the Sky Blues are bumping along the bottom of the league... no need to be sloppy!

 

[SympatheticSaint]

Thanks Shmmeee for the reply and not an elocution lesson.
So basically they are answerable to their investors on what to accept or weather to sell in the first place and when to sell.
So although the £1 to buy the club of sisu (don't know how that works) maybe acceptable their investors may want the loan money also before selling, or am I going off the track abit?

No one's telling you how to speak! Just how to write

 

[mrtrench]

re: Does SISU have to check with clients before selling?

It depends on the relationship SISU has with its clients. Probably, the investors in CCFC are a small and specific group - so indeed, SISU would need their permission to bail out. That's because this is an unusual investment for a Hedge Fund... it's more like Private Equity.

However it is possible that the CCFC holding is part of a bigger strategy including other investments, and that SISU has created an index or something on the return (rather like an inflation index but measured against returns on the investment package instead). In which case, they will have issued bonds, swaps etc. against that index and they would not have to get permission from investors before making a decision.

I think it highly unlikely that Hoffman would make an offer than included covering all SISU's losses. The club is not worth that much money, he'd be mad. No investor would put money forward on that basis unless he is a fan. Hoff is a fan, and compared to most of us he is wealthy, but he doesn't have that kind of money.


Also an elocution (sic) lesson:

Weather - the state of the atmosphere (e.g. What's the weather like? Oh, it's raining)
Whether - offering a choice between alternatives (e.g. I'm undecided whether to stay or go)

of - expressing a relationship between a part and a whole (e.g. the sleeve of his coat)
off - moving away from something (e.g. he ran off)


(just having a laugh on the latter bit)

 

[skybluesam66]

No - it is a fund with investment managers - They will choose which fund to invest in based on risk profile - but nothing more . Do you choose which exact companies your pension fund is invested in?

 

[mrtrench]

SkyBlue Sam, how do you know that for sure? It may be a fund. It may not be - financial institutions have many ways to package investments and I write here as an insider in the industry if not SISU. If you have inside information re this investment or SISU then I concede to your greater knowledge. Otherwise, I reiterate that it could be either.

 

[ICHAN]

Thanks for the lesson lads.

So could this be a stumbling block in negotiations?
I am just trying to figure out what problems there could possibly be regarding any kind of takeover should there be one going on.

 

[wingy]

Thanks for the lesson lads.

So could this be a stumbling block in negotiations?
I am just trying to figure out what problems there could possibly be regarding any kind of takeover should there be one going on.

Seems debatable Ichan as to whether they need the funds permission ,normally they would just manage the fund without the need for investors input,the real reason they will provaricate is to maintain their management fees.

 

[ICHAN]

Two thread's in one, english lesson as well.

Could this be a potential sticking point then as far as negotiations go then as this would not be a normal what to do with any investors money, regarding sisu decide to do this that or the other with the investment?
Maybe they need the said investors go ahead with the selling of the club and how much their investors want.
Could they be having some input into it?
So what would there management fees be and how much would that be?