PAC completes latest boutique divestment
Pacific Current Group (PAC) has completed the divestment of its holding in Carlisle Management Company to alternative asset manager Abacus Life.
The deal was first announced in July that PAC would sell 100 per cent of interest in Carlisle to the US firm.
At completion, PAC received 1.97 million newly issued Abacus bonds with a total aggregate face value of US$49.2 million ($75.9 million). PAC also received 1.36 million shares of Abacus common stock with an aggregate value of US$11.1 million.
Speaking at the time of the sale announcement, PAC chair Tony Robinson said: “The sale of Carlisle to Abacus marks another very successful investment for PAC. We have immense respect for the entire Carlisle team and recognise that the opportunity to combine with Abacus is strategically valuable for both businesses.”
A second divestment of its stake in global private credit manager Victory Park Capital Advisors (VPC) to Janus Henderson was completed at the start of October.
PAC announced its plans in August to sell 55 per cent of its 24.9 per cent equity stake in VPC and 22 per cent of its 24.9 per cent of future carried interest entitlements in VPC’s funds yet to be launched to Janus Henderson.
This resulted in PAC receiving US$21.7 million of net cash and US$7.2 million of Janus Henderson stock. A further US$1.4 million of net cash and US$0.5 million of stock is expected before 31 December 2024.
At the start of the year, PAC sold three of its assets to GQG Partners – which previously made an unsuccessful bid to acquire the whole firm – in Avante, Cordillera and Proterra for US$71.2 million.
The combination of the multiple deals has enabled the business to report cost savings of over 40 per cent to materialise in FY25 onwards. The externalisation, together with a restructure of PAC’s US back office operations, has generated net cost savings of $6 million.
Its remaining boutiques in the portfolio post-divestment are expected to generate meaningful cash flow, and some of this will be available for reinvestment via balance sheet investment capital, purchase of secondary selldowns from boutique shareholders, and working capital to fund business growth.
PAC also seeks to optimise organisational effectiveness by bedding down a changed organisation structure and decision-making processes, which has been implemented in FY24.
AUTHOR
Laura Dew
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