Real Talk: Banking Hurdles, The ASG Deal, and What’s Next
Update on ASG, our Hedge Fund, and PropTech Experts.
I actually started writing this as a quick message for our 🧙♂️ Inner Circle chat, but the more I typed, the more I realized this wasn't just a 'quick update.' It’s something everyone deserves to hear.
We’re big believers in keeping the curtain pulled back here, so I wanted to be totally upfront about where things stand with The Hermit and what’s coming next.
1. Aurora
We’ve got some big updates on the ASG front. To be totally transparent: we’re deep in the weeds right now. The board is busy crunching numbers on a few different deal options, and we’re right there in the mix, brokering a deal between them and an investor group we’re part of.
We’re pushing to land on something exciting by the end of March. Expect a steady stream of posts from here on out… starting with a thorough look at how this whole thing is structured, dropping early next week.
2. Hedge Fund
Now, for some real talk on the Fund.
Our bank has reached a bit of a crossroads with us. Following some strict internal auditing, they’ve decided to move away from funds that aren’t ‘cost centers’ for them. After crunching the numbers, the reality is simple: they don’t find it profitable to host funds under €12m.
Between my own net worth and the 10 other ‘voyagers’ who have joined us so far, we’ve built something great, but the bank is forcing our hand on the timing.
Here is what you need to know:
Your money is safe: This doesn’t negatively impact participants. If we wound down today, everyone gets their capital back at the current share price of €10.43.
The Track Record: Since our first outside investor joined on July 31st, the average investor is up over 12% (plus whatever TGS is paying us in 2 weeks😉). We’re proud of that.
No change for Subs: If you’re here for the writing and the research, nothing changes.
Whatever happens with the bank, I’m not slowing down. This might mean I go solo, or maybe I bring on a partner or two to keep things lean and focused. I’m also still talking to the bank to see if there’s a middle ground. One way or another, the mission stays exactly the same: doing what I love most, hunting for value and supporting the small, listed companies that deserve it.
I’m committed to staying transparent as we navigate this. Just being real with you all, this has been a mental grind. We’ve spent over a year and a small fortune setting this up, so it’s tough to see the goalposts (arbitrarily) move.
3. PropTech
One last thing before I let you go.
I’ve been having some deep conversations with the founders of a small PropTech company in Spain. Since so many of you have asked about the Spanish real estate market and how tech is actually changing the game there, I thought this would be a perfect case study.
Why this company?
They aren’t your typical raise €5m ‘burn-cash-to-grow’ startup. They are:
Bootstrapped: Built from the ground up without outside help.
EBIT Positive: They actually make more than they spend (a rarity in tech).
Expert Operators: Their team is young, hungry, and has a very unique perspective on the ground.
Whether you’re interested in the sector or just want to see how a lean, profitable tech company actually scales, their perspective is probably useful.
I’m thinking about sitting down with the founders to really dig into their playbooks… would an interview like that be valuable to you? Let me know in the comments if you want me to bring their insights to the surface.
🙏 Feel free to ❤️ and comment so that more people can discover and enjoy our Substack 😇