Pinnacle has agreed to a deal to purchase a 25 per cent stake in Five V Capital, by snapping up convertible redeemable preference shares at a cost of $65 million plus an additional $10 million contingent on a successful second fund raising for Five V’s Venture Capital strategy.
Pinnacle has launched a $105 million fully underwritten institutional placement to fund the investment and replenish balance sheet capacity that was used to fund the acquisition of the 25 per cent stake in Coolabah in 2019.
According to an ASX filing on Tuesday, this most recent acquisition represents a strategic investment that is expected to deliver attractive returns for Pinnacle shareholders.
“The investment announced today is consistent with Pinnacle’s strategy of diversifying into higher growth alternative asset classes such as private equity; and demonstrates the attractiveness of Pinnacle as a trusted partner to fund managers across all asset classes,” said PNI managing director Ian Macoun.
“Over time, investment professionals within the Five V group will also have the opportunity to buy a portion of the equity currently held by Adrian and Srdjan, enhancing internal alignment and promoting longevity and consistency of performance,” Mr Macoun said.
Five V, led by principals Adrian MacKenzie and Srdjan Dangubic, specialises in high growth, technology-enabled companies and has made 15 private equity and 17 venture capital investments to date.
Following the investment, Pinnacle will have exposure to Five V’s Fund III, Fund IV (closed in November 2021) and VC Fund 1, totalling FUM of $1.1 billion, as well as future funds raised by Five V.
