Tetragon Financial Group Ltd (LSE:TFG) (Q4 2024) Earnings Call Highlights: Strong Returns ...

In This Article:

  • Fully Diluted NAV per Share: $35.43 at December 31, 2024.

  • NAV per Share Total Return: 15.4% for 2024.

  • Annualized NAV Share Total Return Since IPO: 10.8%.

  • Return on Equity (ROE): 14.6% for 2024.

  • Dividend Declared: $0.11 for Q4 2024, totaling $0.44 for the full year.

  • Dividend Yield: Approximately 3.1% based on year-end share price of $14.

  • Shareholder Returns via Tender Offer: Approximately $25 million returned in April 2024.

  • Investment Income Contribution to NAV: Increased NAV per share by $6.45.

  • Operating Expenses and Fees Impact on NAV: Reduced NAV per share by $1.54.

  • Interest Expense Impact on NAV: Reduced NAV per share by $0.28.

  • Gross Dividends Impact on NAV: Reduced NAV per share by $0.44.

  • Net Dilution Impact on NAV: Reduced NAV per share by $0.46.

  • Share Repurchases Impact on NAV: Increased NAV per share by $0.57.

  • Private Equity and Venture Capital Allocation: Increased to 22% from 16% in 2023.

  • Bank Loans Allocation: Decreased to 5% from 8% in 2023.

  • Private Equity and Asset Management Companies Allocation: Increased to 45% from 44% in 2023.

  • Aggregate Investment Performance: Gross profit of $575 million for 2024.

  • Top Investment Gains: $280 million from Equitic, $153 million from Ripple Labs, $126 million from an Australian gold mining company.

  • TFG Asset Management Gain: $300 million for 2024.

  • Hedge Fund Strategies Gain: $33 million for 2024.

  • Bank Loans Loss: $16 million for 2024.

  • Real Estate Loss: $18 million for 2024.

  • Private Equity and Venture Capital Gain: $285 million for 2024.

  • Legal Assets Gain: $4 million for 2024.

  • Other Equities and Credit Loss: $12 million for 2024.

  • Cash Bank Balance: $30.5 million at year-end 2024.

  • Net Cash Balance: Negative $339 million at year-end 2024.

  • Credit Facility: $400 million with $300 million drawn as of year-end 2024.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Tetragon Financial Group Ltd (LSE:TFG) achieved a NAV per share total return of 15.4% for 2024, with a fully diluted NAV per share of $35.43.

  • The company declared a dividend of $0.44 for the full year, representing a yield of approximately 3.1% based on the year-end share price.

  • Tetragon's investment in Equitic generated a significant gain of $280 million, driven by higher valuations and increased ownership.

  • The private equity and venture capital segment saw a substantial gain of $285 million, with notable contributions from Ripple Labs and an Australian gold mining company.

  • TFG Asset Management recorded an investment gain of $300 million, with strong performance from its asset management businesses.