Funds incubator Pinnacle Investment Management has added a fourth boutique fund to its manager line up.

The firm will pay a total of $18.8 million for 40 per cent of Sydney-based global listed property trust investor Resolution Capital.

Chairman Bruce Coleman and existing staff will own the remaining 60 per cen of Resolution.

It is the fourth boutique that Pinnacle has taken on since it was founded by former Perennial Investments chief Ian Macoun in September 2006.

It already owns stakes in quant fund Plato Investment Management, high conviction manager Hyperion Asset Management and infrastructure manager Palisade Asset Management.

Macoun said that although the sum paid for Resolution was substantial it was well worth it.

The purchase was funded by Pinnacle's majority shareholder, investment manager Wilson HTM.

The manager raised $25 million through an initial public offering in June to help pay for Resolution.

Pinnacle parted with $10 million yesterday, and will part with the remaining $8.8 million this time next year, but only if Resolution meets certain contractual agreements.

These include a clause which states that no key Resolution staff can leave or sell their stakes in the company in the next 12 months.

Resolution has $2.9 billion under management and takes Pinnacle's total funds under management through its boutiques to $4.6 billion.

Resolution was founded in October 2004, but was originally spun out of Lend Lease Investment Management in 1995.

Coleman is the former chief executive of Lend Lease and is also on the board of the recently listed Platinum Asset Management.