Nimble investors back down from sales pitch

Cartoon: Peter Nicholson.

NIMBLE it and move on, indeed: founders of payday lender Nimble, together with early investors, tried to raise $5 million by cashing in some of their shares last month, Margin Call has learned.

However, the attempt was canned by the company. Just as well: potential investors may not have known an ASIC crackdown on the sector was in the works (Margin Call, yesterday). But with ASIC out asking for information from the industry, key players in the payday lending industry were well aware something was looming.

And Margin Call hears more flak is on the way for the sector with ABC TV’s current affairs flagship Four Corners probing the industry for an episode to air on Monday, March 30.

Market sources said the February sales pitch valued Nimble at between $155m and $175m, and investors were told the company was considering
an IPO or trade sale within a year.

It’s not clear whose stakes were on the block, but it’s well-known that Nimble’s early backers included iSelect’s Damian Waller and Les Webb, both of whom are on the Nimble board, and former Wotif CFO Sam Friend.

Co-founders Greg Ellis and Sean Teahan are said to own about a third of the company, with other management and board members holding another third and the rest in the hands of external investors.

Nimble’s previous capital raisings include $4.05m of equity and $1.5m of debt raised last April. This includes $2.35m of equity tipped in by Acorn Capital and Monash Investors. Chief executive Sami Malia said the company did not comment on market speculation.

Bankers feel the pinch

AUSTRALIA’S investment bankers may have to put off buying that second Mercedes after a dismal bonus season that has high-flyers considering whether the grass might be greener — and the cash more plentiful — elsewhere.

At UBS, where bonuses are believed to have been paid in the past few weeks, it’s the first year where Australian executives have been exposed to the cruelty of being treated the same as the rest of the Swiss bank’s employees around the world.

As if it wasn’t enough to bear part of the shame of the investment banking stuff-up of the year — watering down an analyst note on the privatisation of NSW’s electricity assets after contact from Premier Mike Baird’s office. Back in 2008, UBS agreed to slash bonuses as part of a $US60 billion bailout from the Swiss government.

But Australian executives, who concentrate on cutting deals rather than the bank’s traditional worldwide business of looking after rich people’s money, secured a special deal that entitled them to a slice of local earnings.

Sadly, that’s ended.

“Senior people are definitely in a different world now,” one source said. “A lot of the upside has disappeared.”

UBS will no doubt be keen to put down talk of defections. Top of the retention list would surely have to be rainmaker Matthew Grounds, widely regarded as Australia’s most powerful investment banker.

Onlookers reckon he could do well if he set up his own shop.

And UBS’s real estate M&A team, the best in Australia under the leadership of veteran property dealer Tim Church, would be attractive to poachers.

Churchy’s crew is currently on for Federation Centres in its $11bn merger deal with Novion Property Group and is advising Morgan Stanley on its $9bn-plus sale of Investa Office and Investa Land.

Over the past 18 months it has acted for Frank Lowy’s Westfield in the $70bn split of the shopping centre landlord and Stockland’s $3bn failed tilt for Australand.

Meanwhile, over at Deutsche Bank, Das Rheingold is apparently in short supply and there’s also unhappiness abroad at Morgan Stanley.

ASIC’s astute advice

“FOR research to be genuinely objective and independent, research staff must be quarantined from other business units such as units who have client relationship management responsibilities.” — ASIC Regulatory Guide 79, Improving the quality of investment research, December 2012.

“Clients have raised some additional points around the long-term lease of NSW’s utilities assets.” — UBS electricity privatisation note (the Breakin’ 2: Electric Boogaloo version, issued after Baird’s office got in touch), Tuesday.

“Our standard policy is not to comment on operational matters. This includes whether ASIC is interested in or looking at — or not — a particular matter.” — ASIC spokeswoman, yesterday.