Pacific Current Group shares buoyed by GQG acquisitions
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More news: Shares in Pacific Current Group rose on news that investment manager GQG Partners had acquired three of its US boutiques for an aggregate cash consideration of US$71.25 million ($108.56 million)
Pacific Current shares were up 5.7% to $9.96 by 3:00pm AEDT, with GQG gaining 0.25% to $2.08.
GQG launches private capital business, buys boutiques from Pacific Current Group
The news: Investment boutique GQG Partners has announced the launch of GQG Private Capital Solutions, with the acquisition of a trio of US boutiques from Pacific Current Group.
The numbers: GQG Private Capital Solutions will acquire Pacific’s minority interests in Avante Capital Partners, Proterra Investment Partners, and Cordillera Investment Partners, for an aggregate cash consideration of USD71.25 million ($108.56 million).
The context: The new venture will be GQG’s first foray into private markets, and will operate independently from GQG’s traditional global equities business. It will focus on providing a range of financing and strategic solutions to mid-market private capital asset management firms.
On the news, Pacific Current Group said that the majority of the boutiques’ US-based employees, including the investment team led by Pacific Current CEO/CIO, Paul Greenwood, will become full-time employees of GQG. Greenwood will lead the investment team alongside current GQG managing director, Mike Daley.
The news comes one week after Pacific Current sold its 4% stake in GQG for $257.3 million in a discounted block trade deal with institutional investors. At the time of the sale, Pacific Current said its decision to sell its GQG shares stemmed from its long-stated desire to reduce equity market risk exposure in its portfolio, noting that owning listed securities over the long-term is beyond its investment mandate.
The sources: GQG Partners announcement , Pacific Current Group announcement, Capital Brief
