Pinnacle acquires 25% stake in Aussie PE

Pinnacle Investment Management has received a 25% equity stake in Australian-based private equity, Five V Capital.

The acquisition was via convertible redeemable preference shares, with an investment of $65 million plus an additional $10 million which was contingent on a successful fund raising for the Five V’s venture capital strategy.

In an announcement made to the Australian Securities Exchange (ASX), the company said it was a strategic investment that was expected to deliver attractive returns for Pinnacle shareholders and was consistent with the firm’s strategy of increasing exposure to private capital markets.

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Pinnacle’s investment would also provide Five V with capital to support co-investments and business development initiatives while, over time, members of the broader investment management team would be invited to acquire equity in Five V from the principals, with no sell down by existing Five V principals.

Five V, which was currently led by Adrian MacKenzie and Srdjan Dangubic, focussed on high growth assets in the attractive small to mid-market and currently had $1.1 billion in funds under management (FUM).

Pinnacle managing director, Ian Macoun, said: “The investment announced today is consistent with Pinnacle’s strategy of diversifying into higher growth alternative asset classes such as private equity, and demonstrates the attractiveness of Pinnacle as a trusted partner to fund managers across all asset classes”.

Pinnacle also announced it launched a $105 million fully underwritten institutional placement to fund the investment and replenish balance sheet capacity that was used to fund the acquisition of the 25% stake in Coolabah in 2019.

 

 

 

 

 




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