Are the “Reference Investments” legacy FAH investments or Helios?
I guess that question was already answered.
This deal seems like it’s all about aligning incentives. New management did not want to underwrite legacy investments and Fairfax gets more leverage to the upside on the whole portfolio. Better for Helios shareholders but good for both.
I think that’s right although new management’s scepticism about these investments didn’t stop them closing the deal.
That's true but mitigating any losses on the "Reference Investments" now should theoretically materially reduce Helios's cost of capital resulting in an increase in the share price which benefits everyone.