Pinnacle Investment Management has forged a strategic partnership with Japanese private markets manager Advantage Partners.
ASX-listed Pinnacle has agreed to acquire 13 per cent over a three-year period, having previously acquired a 5 per cent stake for $92 million.
The firm will sit alongside Advantage Partners’ existing strategic partner Tokyo Century, and managing partners and staff will retain a majority stake.
Advantage Partners is a diversified private markets platform in Japan, offering Pinnacle entry into Japan, and it said the firm has strong organic growth potential. Large upcoming fund raises are set to take its group funds under management from US$3 billion to US$6.5 billion over the next 12 months.
It noted the Japanese government pension investment fund (GPIF) is the second-largest in the world, with assets of more than US$1.6 trillion.
“The combination of Pinnacle’s global distribution and Tokyo Century’s domestic and international networks and balance sheet commitment to Advantage Partners funds sets Advantage Partners up for accelerated growth with strong shareholder support,” it said.
“The partnership is aligned with Pinnacle’s objective to diversify internationally and increase exposure to global private assets, particularly in the attractive mid-market area.”
It will also enter into a distribution services agreement covering global distribution of Advantage’s strategies.
Pinnacle managing director Ian Macoun said: “We have made great progress in exporting our unique multi-affiliate model globally. This transaction underscores our ability to partner with world-class teams with unique platforms in highly attractive asset classes and geographies.
“Advantage Partners has a client-centric culture and has an exceptional track record relative to global and regional peers. After engaging with the teams over many months, we have great confidence in the firm’s ability to deliver sustained excellence well into the future. The partnership also deepens and underscores our commitment to the strategically important Japanese market, which we hope will further accelerate our growth in the region.”
Pinnacle affiliates already include private credit manager Metrics Credit Partners, US capital markets firm VSS Capital Partners, and private equity firm Five V Capital.
In its full-year results earlier this year, Macoun was vocal about how it is keen to expand Pinnacle’s international distribution. International funds under management (FUM) accounted for a significant portion of FUM growth over the financial year, jumping 179 per cent to $51.4 billion at 30 June 2025.
The $33 billion increase in international FUM comprised net inflows of $4.8 billion, acquired FUM of $22.2 billion, and increases due to market movements and investment performance of $6 billion.
“Since the inception of the first internationally domiciled Pinnacle affiliate, Aikya, we have continued to focus our expansion on new affiliates headquartered in global gateway cities with large addressable end-markets,” he said.
