KEY POINTS:
Fisher Fund Management's departing chief investment officer Warren Couillault may have received more than $5 million for selling his 27 per cent stake in the business.
The firm announced on Monday that Couillault would be leaving - a week and a half after he resigned as a director. Managing director Carmel Fisher said after Couillault's decision to play a less significant role in the company and to sell his shareholding, the board and Couillault had jointly decided it was in the best interests of the company for him to resign.
Fisher has said there is no rift between the pair and Couillault this week told other media he had a variety of reasons for his decision to leave.
But market sources say the unexpected departure may be related to Couillault wanting to cash up on his investment after the firm decided not to go ahead with a float last year.
Yesterday, Fisher confirmed the firm had considered a partial float on the New Zealand stock exchange but had decided it was not appropriate because the management wanted to retain their investments and it could distract the company from its core business. She said all members of the executive, including Couillault, had decided against it. Couillault did not return calls from the Business Herald to his mobile and was not in the office yesterday. His last day of work is due to be today.
According to business valuation experts talked to by the Business Herald, there are two generally accepted ways to measure the value of a funds management business - either through a percentage of their funds under management or through a multiple of the business' earnings before interest, tax, depreciation and amortisation (ebitda).
The range of the percentage depends on the maturity of the business and its potential to grow its assets under management while the multiple takes into account what is happening in the current market conditions. A range of between 2 and 5 per cent of funds under management, which is the currently accepted level, would value the Fisher Funds business between $20 and $50 million conservatively, putting Couillault's share at $5.4 million.
Fisher said she could not confirm how she and husband Hugh had paid Couillault for his share as both parties had signed a confidentiality agreement.
Couillault, who had been with the firm for the last six years, has a restraint of trade agreement in which he is unable to set up his own business or work for another investment company for the rest of the year.
His position won't be replaced.
