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.
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.
AUTHOR
Oksana Patron
Recommended for you
The rise of private credit funds is giving research houses cause for concern about their viability for retail and wholesale investors and necessitating changes to their research process.
ASIC is launching a new portal for Australian Financial Services licensees in May to ease the process of applying for a licence.
While Betashares and Vanguard collectively account for nearly half of the Australian ETF industry, there is a clear winner in terms of the number of products they have listed on the ASX.
A Sydney fund manager has launched its first active ETF investing in Indian companies on the Cboe Australia Index.
