Pinnacle Investment Management is targeting increasing exposure to global private markets as domestic affiliates in Metrics and Five V lead its net inflows.
In a strategy update, the firm said net inflows into private markets funds represented 57 per cent of total inflows for the 12 months to 30 June 2024. This includes flows into strategies offered by Pinnacle boutiques Palisade, Metrics, Riparian and Five V.
This led private markets funds under management (FUM) to rise to $24.5 billion as of 30 September, an increase of 7.5 per cent from the end of the financial year.
For example, FUM at private credit manager Metrics has risen 59 per cent from $12.1 billion in June 2022 to $19.3 billion in June 2024, while private equity manager Five V has grown FUM by 84 per cent from $1.3 billion to $2.4 billion over the same period.
After seeing steady growth over the last few years, Pinnacle noted the first half of 2024 saw particularly steep growth with FUM at Five V rising by 49 per cent between December 2023 and June 2024 and Metrics rising by 19 per cent.
As well as growth in FUM, Pinnacle said private markets underpinned its revenue and earnings growth in FY24.
As a result of this high customer demand for domestic strategies, Pinnacle is aiming to diversify strategies into further private markets assets globally. International markets account for 29 per cent of Pinnacle’s FUM at $24.4 billion as of 30 September, and it is “building momentum” in international distribution which is delivering meaningful inflows.
It particularly flagged the opportunity for private markets in the US, which is the largest in the world at $7.1 trillion in assets under management, and said the US mid-market is a “particularly attractive sector with ample opportunity”.
In light of this, it has taken a stake in US manager VSS which will provide Pinnacle with an increased exposure to the US market. Founded in 1981, VSS provides bespoke, customised private capital solutions for corporates with a focus on high-growth industries.
There is opportunity there, Pinnacle said, for VSS to move into complementary areas, such as private equity and private debt, and to accelerate growth via increased sizes and acceleration of the fundraising cycle.
This will be Pinnacle’s second North America-based affiliate as it already holds a stake in Canadian small-cap equity manager Langdon Equity Partners.
