Pacific Current Group (PAC) has announced it has sold a portion of its interest in US-based real estate private equity firm Pennybacker Capital Management.
It purchased a minority stake in the alternative investment manager in November 2019, with an initial investment of US$20 million alongside an equal co-investor.
In an ASX announcement on Tuesday, PAC confirmed the partial interest sale to Goldman Sachs Asset Management’s Petershill Partners, which is a diversified, publicly listed, global alternatives investment group focused on private equity and other private capital strategies.
In exchange for selling 55 per cent of PAC’s 16.5 per cent equity stake in Pennybacker, along with all of its 2.4 per cent carried interest entitlement for Pennybacker funds launched after PAC’s initial investment, the Australian boutique asset manager would receive approximately US$35.2 million.
This comprised US$4.8 million at closing, followed by equal payments of roughly US$15.2 million on both the first and the second anniversary of the transactions.
While actual proceeds could vary modestly based on final transaction costs, PAC’s estimate of the fair value of its Pennybacker stake was US$57.2 million as at 31 December 2023.
“This is an exciting development for both Pennybacker and PAC, and it is wonderful validation of the value the Pennybacker team has created, and continues to build,” said PAC’s chief executive officer and chief investment officer, Paul Greenwood.
“We look forward to many more years of Pennybacker creating value for both its investors and its shareholders.”
In March, it was announced that GQG Partners has entered into an agreement with PAC to acquire minority interests in three of PAC’s US-based affiliates, namely Avante Capital Partners, Proterra Investment Partners, and Cordillera Investment Partners, for an aggregate cash consideration of US$71.2 million ($108 million).
The boutiques would represent the foundational investments for the newly launched GQG Private Capital Solutions (PCS), marking GQG’s first foray into private markets, and would operate independently from GQG’s traditional global equities business.
Following completion of the transaction, PAC’s Paul Greenwood and GQG managing director Mike Daley would co-lead the PCS business and investment team.
