IFT - Infratil

[Beagle]

Big lump, that's for sure. Wondering whether they would be happy to pay back some of the money if and when property stocks and infrastructure crumble. Can't happen? Look no further than at our very own NWF;

But I am sure if this happens then it will be just "caveat emptor" - could not possibly have anything to do with the managers performance - can it? Manager just shares the spoils.

Paying massive performance fees based on some theoretical valuation exercise without the hard supporting evidence of either a listed stock to check the real market value or the benefit of an actual transaction validating same is wide open to the possibility of error or manipulation. With tens of millions of dollars at stake the mind boggles as to how many "independent" valuations of the various assets Morrisons commissioned before choosing the ones that conferred them the greatest commercial advantage ?

So many assumptions go into valuing a private company, (many on here would have no idea) and the variance between one valuation and another by so called experts can be truly eye watering. I don't care what the management agreement says I think its morally repugnant to charge massive performance fees on unrealised theoretical valuation gains that could quite easily prove to be grossly inaccurate or as BP suggests, reverse over time.