Tetragon Financial Group Limited

Fully diluted NAV per share was $41.88 at December 31, 2025, versus $35.43 at December 31, 2024. NAV per share total return was 19.6% for 2025, and ROE was 23.4% for the full year, net of all fees and expenses. Tetragon declared a Q4 dividend of $0.12, up from $0.11 in Q3, and $0.45 for the full year. The NAV bridge showed $11.24 per share of investment income, offset by $2.78 of operating expenses/management and incentive fees, $0.29 of interest expense, $0.44 of gross dividends, and $1.28 of net dilution. Looking ahead, management said the BGO call transaction should bring about $475 million gross cash proceeds in March, with taxes to be paid from that amount, and they announced a plan to spend $50 million on share buybacks; they also said they currently prefer buybacks over dividends when there is a large discount to NAV.

Patrick Giles Dear framed 2025 as evidence that Tetragon’s long-term, multi-strategy model is working, emphasizing the firm’s 21-year history, 631% NAV per share total return since IPO, and 39% insider/employee ownership as signs of alignment. He said the business has evolved far beyond its CLO origins into a diversified platform spanning asset management stakes, direct investments and multiple alternative strategies. On the discount to NAV, he was candid that there is no simple solution and said buybacks help when the discount is wide, but do not by themselves solve a persistent discount.

Paul Gannon focused on the core value-creation metrics: NAV per share total return, ROE and distributions. He highlighted the year-end NAV of $41.88, the 23.4% ROE, and the $0.45 full-year dividend, and walked through the NAV bridge showing $11.24 per share from investment income offset by expenses, interest and dilution. On capital structure, he said cash at bank was $27.1 million at year-end, the revolving facility was increased to $500 million and extended to 2034, and $350 million was drawn; he also said future cash commitments were just under $100 million, including $35 million for private equity funds, $19.3 million for contingency capital, $20.7 million for BGO funds, $15 million for Tetragon Partners’ latest fund and $9.9 million for Hawke’s Point.

Most questions centered on the discount to NAV, buybacks, and the BGO sale. Management said the BGO call by Sun Life would settle in March, that Tetragon is giving up its management-company equity interest and ongoing rights for $155 million, and that it will still retain LP interests and carried interest in existing funds. They added that they expect about $475 million gross cash from the transaction, intend to use cash first for taxes, then buybacks and debt paydown, and confirmed a $50 million buyback plan. On Ripple valuation, Paul Gannon said the position is marked using private-market trading sources plus an independent valuation agent, and that $150 per share was within the agent’s fair value range at year-end.