Pacific Current Group (PAC) has agreed to sell its interests in alternative investment manager Carlisle Management Company as part of US-based firm Abacus Life’s acquisition of Carlisle.
Namely, Abacus will be purchasing Carlisle by acquiring 100 per cent of its equity in exchange for a combination of Abacus bonds and common stock.
In an ASX announcement on Friday, PAC detailed that its interest entitles it to 16 per cent of Carlisle’s gross revenue and 40 per cent of all net sale proceeds.
The agreement, PAC confirmed, is expected to provide the boutique asset manager with 1.99 million newly issued Abacus bonds with a coupon of 9.875 per cent, at an expected total aggregate par value of US$49.7 million.
Commenting on the transaction, PAC chairman Tony Robinson noted: “The sale of Carlisle to Abacus marks another very successful investment for PAC.”
“We have immense respect for the entire Carlisle team and recognise that the opportunity to combine with Abacus is strategically valuable for both businesses. We wish them continued success,” Robinson continued.
Moreover, PAC will receive 1.37 million shares of Abacus common stock and will have access to 90 per cent of the total value at closing. The remaining 10 per cent of the total proceeds, PAC explained, will be held back for 18 months from closing.
As at 18 July, the aggregate net proceeds to PAC are estimated to be US$61.2 million.
In May, the boutique asset manager also announced it had sold a portion of its interest in US-based real estate private equity firm Pennybacker Capital Management, having first purchased a minority stake in the alternative investment manager in November 2019.
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.
Also this year, GQG Partners announced that it 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.
The boutiques represent the foundational investments for the recently launched GQG Private Capital Solutions, marking GQG’s first foray into private markets, operating independently from the company’s traditional global equities business.
