With the valuation for Mosh scheduled for December I was doing some a bit of research on any recent updates for the company and came across this AFR headline.

https://www.afr.com/street-talk/men-s-health-player-mosh-set-to-appoint-an-adviser-20231213-p5er6r

I don't have access to view the article, but potentially there could be another potential exit for BTI in the near future. Currently Mosh only represents around 3% of the BTI portfolio ($7.5m at current carrying value) so there likely wouldn't be any significant impact on the NTA.

December Update

The December update provides a good summary from management on why 2022 was a fairly quiet year for the company and a high level view on the private equity market.

Another item to note is that one of their holdings Brosa has been placed into voluntary administration. The value of this was already written down by management so it is likely they were expecting this outcome.

BTI has marked down the carrying value of two of the companies they hold within their portfolio following an end of year review. The next review of these two companies will be in June 2023, so unless there is a third party transaction / capital raisings, Nosto and Access Telehealth will remain at the reduced valuation for 12 months.

This is probably prudent given the significant re-rating of technology companies and has minimal impact (3.7c) to the overall NTA which the mid year dividend will be based off. The market movements of Site Minder (ASX:SDR) have a much bigger impact to the NTA than the newer holdings.

Bailador has announced that the company will now be paying an ongoing 4% fully franked dividend as part of a new policy effective July 2022. Along with any special dividends as deemed appropriate by management.

LINK

The dividend amount is calculated from the pre-tax NTA , which will make the 4% much more attractive when BTI has been trading at a discount.

eg. April NTA announcement $1.99 pre-tax vs current share price of $1.38.

I feel like this will attract a wider range of investors who like consistent dividends and potentially close up the gap in share price to the carrying NTA of the Bailador portfolio.

Personally I would prefer if the capital was used for further investment, however if there are not any suitable investments, it shows the team there are being selective and are not just buying for the sake of deploying the available cash.