Having completed several divestments over the past year, Pacific Current Group (PAC) is now exploring existing and new investment opportunities to accelerate growth.
The asset manager announced its half-year results for the six months to 31 December 2024.
Its statutory net profit after tax (NPAT) was up 757 per cent from $11.7 million in 1H24 to $100.3 million in 1H25. This was underpinned by fair value uplifts and gains on disposals, Pacific Current stated.
During the six-month period, the firm completed asset sales with exits from Banner Oak Capital Partners, Carlisle Management Company, and Victory Park Capital, providing “significant liquidity and realisation of fair value uplift”.
This follows the earlier sale of 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.
Pacific Current is also underway with an off-market, equal access share buyback of up to $300 million that is expected to close on 7 March, with a price set at $12 per share.
Now with “significant capital” to be allocated, the firm said it is targeting opportunities to drive growth among existing boutique partners and exploring new investment prospects.
The company’s management expects to shift its focus this year to a range of initiatives, including:
- Completing the buyback and return of capital to shareholders.
- Delivering growth initiatives – look for opportunities to increase investment in current boutique partners where the potential exists to accelerate growth, alongside new investment opportunities.
- Optimising organisational effectiveness – continue to embed significant changes to organisation structure and decision-making processes implemented in CY2024.
- Reducing corporate costs – reduction of 37 per cent was achieved in 1H25 (compared to 1H24) – and continuing to explore further opportunities to reduce costs.
- Reducing debt – continue to pursue negotiations to pay down outstanding debt.
Tony Robinson, chairman of Pacific Current, commented: “The PAC management team has done an excellent job managing the assets, disposals and the buyback currently underway. These efforts have established a solid foundation for the future growth of the business.”
Michael Clarke, Pacific Current executive director and acting chief executive, also said: “After a busy and exciting start to FY2025, PAC management is focused on executing a clear and disciplined plan to continue the strong momentum in 2H25.”
In its annual general meeting last November, the asset manager signalled its long-term growth plans targeting opportunities among its current boutique partners where there is potential to accelerate growth and other new investment opportunities.
It also stated it had “significant capital” to invest in accretive opportunities on an opportunistic basis. As of 30 June 2024, PAC said it has $313 million in surplus cash which would be used for share buybacks, capital returns, dividends and growth investment.
