Pinnacle launches $400m equity raising for double acquisition
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More news: Pinnacle Investment Management Group has launched a $400 million institutional placement, after agreeing to acquire strategic interests in international asset management firms VSS Holdings and Pacific Asset Management for a combined $142.8 million.
Pinnacle has agreed to pay US$60.5 million ($92.8 million) for a 22.5% equity stake in VSS Holdings, a New York-based private markets investment management firm specialising in structured capital.
It will also pay £25.75 million ($50 million) for a 25% equity stake in London-based Pacific Asset Management.
Pinnacle said both investments are expected to be earnings-per-share accretive on a pro-forma FY25 NPAT basis.
Pinnacle's equity raising will fund the investments, while contributing $75 million to seed new strategic for existing affiliates and $182 million to support investment in additional growth initiatives. The fund manager will also launch a share purchase plan to raise a target $25 million.
What they said: "These transactions not only accelerate and enhance our international growth ambitions, but they also provide additional asset class diversification and support further growth of our platform," Pinnacle's managing director Ian Macoun said.
"Both VSS Capital and Pacific Asset Management have client-centric cultures, and they have exceptional track records when it comes to growth, performance and meeting their clients' needs.
"After engaging with the teams over many months, we have great confidence in each firm's ability to deliver sustained excellence well into the future."
Pinnacle enters trading halt ahead of raise announcement
The news: Multi-affiliate investment manager Pinnacle Investment Management Group has entered a trading halt on the ASX ahead of an announcement about a capital raising.
The numbers: Pinnacle's shares closed at $21.44 on Tuesday, having more than doubled in value since January.
The context: The Sydney-based company has requested that the trading halt remains in place until it announces the completion of the institutional component of the offer, expected later today.
The sources: ASX announcement, ASX announcement
