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EverArc Holdings-- a holding company with interesting directors


CapriciousCapital
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EverArc is a blank check company looking to acquire business in North America. It trades 20% over book so it's not an exhilarating investment idea or anything like that. But, I think its founders make it interesting to watch.

 

Tracy Britt Cool-- former Warren Buffett "protege" according to WSJ, was CEO of Pampered Chef, on the board of KHC and BA.

William N. Thorndike Jr. -- Author of The Outsiders, recommended reading by Buffett, and a PE guy

Also W. Nicholas Howley, Vivek Raj and Haitham Khouri, who all look like PE guys.

 

They've got $357 million in cash according to their listed filings on their website, with 20% of that just raised in their IPO on the London Stock Exchange and the rest owned held by some combination of the founders themselves and institutional investors. The prospectus is available on their website to anyone claiming to be from the UK, but doesn't hold many details.

 

Anyway, an interesting company to watch.

 

http://www.everarcholdings.com/

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EverArc is a blank check company looking to acquire business in North America. It trades 20% over book so it's not an exhilarating investment idea or anything like that. But, I think its founders make it interesting to watch.

 

Tracy Britt Cool-- former Warren Buffett "protege" according to WSJ, was CEO of Pampered Chef, on the board of KHC and BA.

William N. Thorndike Jr. -- Author of The Outsiders, recommended reading by Buffett, and a PE guy

Also W. Nicholas Howley, Vivek Raj and Haitham Khouri, who all look like PE guys.

 

They've got $357 million in cash according to their listed filings on their website, with 20% of that just raised in their IPO on the London Stock Exchange and the rest owned held by some combination of the founders themselves and institutional investors. The prospectus is available on their website to anyone claiming to be from the UK, but doesn't hold many details.

 

Anyway, an interesting company to watch.

 

http://www.everarcholdings.com/

 

My first thought when I see a lot of big names on the list of founders is “Who is going to do the work?”

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20% over book is pretty clearly because of the people who run this. And this can persist long time. Compare to BOMN.

 

I wonder how successful they gonna be in acquiring good business(es). So far the track of such companies is not very good. Partially because prices of good businesses are high. (See BOMN again).

 

I'd probably buy a tracking position, but this is a PFIC now and I don't have tax deferred account with direct access to London. Anyone knows if EVREF is a ticker for this co or old ticker for some other company called this name?

 

BTW, racemize is the best at running these experiments, but here's something I did on a napkin: Assume 10 years investment. Assume you either buy this at 1.2 book or a Buffett partnership fee structure (0%, 25% >6%) at 1 book. Assume 10%/15%/20% annual ROE/returns with P/B going to 1 at the 10th year. This underperforms at 10%, ties at 15%, outperforms at 20%. Since I'd say it's unlikely to return >15%, investor is better off buying a Buffett partnership fee structure investment. ;)

However, if this acquires a good business, the P/B is unlikely to go to 1, so there's that.  8)

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My first thought when I see a lot of big names on the list of founders is “Who is going to do the work?”

 

Tracy Britt Cool.

 

This company is why she left BRK. It's her investment vehicle. I'm pretty sure she's not just gonna sit and collect director's fees.

 

Now, there's a reasonable question whether even she can do well with cash in current business/market environment. And whether she's as good as she thinks she is.

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