Pinnacle Investment Management has successfully completed its $400 million fully underwritten institutional placement of some 19.7 million new fully paid ordinary shares.
The placement, completed at a price of $20.3 per new share, will be used to fund Pinnacle’s strategic investment in US-based private markets firm VSS Capital (VSS) and UK-based Pacific Asset Management (PAM).
Namely, earlier this week, the firm announced it would acquire a 22.5 per cent stake in VSS and a 25 per cent equity in PAM, equating to a holding of US$60.5 million ($92.6 million) and £25.7 million ($49.9 million), respectively.
In a statement to the ASX on Thursday, Pinnacle also confirmed it would use the capital to seed new strategies for existing affiliates, including Life Cycle, in addition to acquiring additional equity in existing affiliates.
Moreover, it hopes to support investment in additional horizon two and three growth initiatives.
“We are very pleased with the success of the placement and the strong support delivered from existing and new institutional shareholders,” managing director Ian Macoun said.
“It provides a strong endorsement that investors share our confidence in the strategy we are committed to pursuing and the exciting growth opportunities ahead of us. We look forward to partnering with the VSS Capital and Pacific Asset Management teams through this next phase of accelerated growth.”
VSS will be Pinnacle’s second North America-based affiliate as it already holds a stake in Canadian small-cap equity manager Langdon Equity Partners.
Meanwhile, PAM is Pinnacle’s third UK affiliate alongside Aikya Investment Management and Life Cycle Investment Partners.
In announcing the deal, the investment manager said it would enhance the firm’s diversification into private capital and international markets while also delivering additional scale.
“VSS and PAM highlight Pinnacle’s focus on international acquisitions with substantial growth potential where Pinnacle expects it can add value to accelerate growth. Pinnacle is also continuing to support the growth of current affiliates, including through increased investment in distribution channels domestically and internationally,” Pinnacle said earlier this week.
“Pinnacle continues to see strong momentum into FY25, with ongoing growth in private markets and other alternative strategies, historical fundraising headwinds in public market equities easing and having delivered meaningful international inflows following an extended build-out of Pinnacle’s international distribution capabilities.”
On Thursday it also re-confirmed that it would be undertaking a non-underwritten share purchase plan to raise a target of $25 million.
Under the scheme, eligible shareholders will be offered the opportunity to acquire up to $30,000 in new shares and is expected to commence later this month.
