Pinnacle Investment Management has announced that it will acquire a strategic stake in a US and UK manager for $142 million.
These are a 22.5 percent stake in US private markets firm VSS and a 25 percent stake in UK-based multi-asset manager Pacific Asset Management (PAM). VSS’s stake is worth US$60.5 million ($92.6 million) and £25.7 million ($49.9 million) for the UK asset.
The company is also raising $400 million through a fully subscribed placement of Pinnacle shares from institutional and sophisticated investors to fund both investments, launch new strategies for existing subsidiaries and support investment in new growth initiatives.
Pinnacle said the new partnerships will enhance the company’s diversification into private and international capital markets while bringing it greater scale.
“VSS and PAM highlight Pinnacle’s focus on international acquisitions with substantial growth potential, where Pinnacle hopes to add value to accelerate its growth. Pinnacle also continues to support the growth of its current subsidiaries, including increasing its investments in domestic and international distribution channels.
“Pinnacle continues to see strong momentum in FY25, with continued growth in private markets and other alternative strategies, historic public markets equity fundraising headwinds easing and Significant international capital inflows following the expanded development of Pinnacle’s international distribution capabilities.
New Affiliates
Founded in 1981, VSS specializes in structured capital investments that provide capital for growth financing, strategic acquisitions and buyouts of lower middle market companies and management teams.
The $60.5 million is split between $50.8 million for Pinnacle’s stake in the asset management business and $9.7 million for Pinnacle’s share of the VSS fund investments. This will be Pinnacle’s second North American-based subsidiary, as it already owns a stake in Canadian small-cap equity manager Langdon Equity Partners.
Meanwhile, Pacific Asset Management was founded in 2006 and is backed by Pacific Investments Group and is also the UK distributor for Pinnacle-affiliated Coolabah Capital Investments funds.
Pacific Asset Management is Pinnacle’s third UK subsidiary, alongside Aikya Investment Management and Life Cycle Investment Partners.
“In addition to a proprietary technology platform for multi-asset portfolio solutions, PAM has an extensive distribution presence across the UK, including in the wealth management market, which is expected to be highly complementary to existing capabilities from Pinnacle. It has a successful history of supporting wholly-owned and minority-owned investment boutiques and providing distribution services to third parties.
“PAM is the UK distributor for Pinnacle affiliate Coolabah Capital Investments, and over time there are expected to be significant collaboration opportunities across distribution, infrastructure and technology, which will benefit both to businesses and other Pinnacle subsidiaries. »
Commenting on the deal, Pinnacle Managing Director Ian Macoun said: “We have made great progress in exporting our unique multi-affiliate model globally. These transactions not only accelerate and strengthen our international growth ambitions, but also provide further asset class diversification and support the future growth of our platform.
“Both VSS Capital and Pacific Asset Management have a client-centric culture and have an exceptional track record of growth, performance and meeting the needs of their clients. After working with the teams for many months, we have great confidence in each company’s ability to deliver sustained excellence going forward.
