M&A: Pinnacle Investment Management eyes off 25% stake in private equity group Five V Capital

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Pinnacle Investment Management (ASX:PNI)  has announced a $65m investment into private equity investor Five V Capital.

Five V Capital is a relatively new firm but is owned by Adrian MacKenzie and Srdjan Dangubic, who have been prominent players in the private equity space in the last decade. Five V has $1.1 billion in funds under management.

Its assets include a stake in fintech lender Plenti (ASX:PLT) as well as one of Australia’s largest unicorns Canva and it has owned casual fashion outlet Universal Store (ASX:UNI) but exited earlier this year.

Pinnacle meanwhile is a parent company for several investment firms – the most notable being equity investors Spheria Asset Management, Firetrail Investments and Hyperion Asset Management.

Pinnacle says the deal will deliver attractive returns to its shareholders and provide Five V Capital with funds to support further investments. It will pay for the deal as part of a capital raising totalling $105 million.

“We are very pleased to have the opportunity to partner with the Five V Capital team led by Adrian and Srdjan,” said Pinnacle managing director Ian Macoun.

“Five V Capital have a proven investment strategy that has delivered exceptional returns and a track record of successful fundraising.

“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.”

Pinnacle (ASX:PNI) share price chart

 

In other Pinnacle news…

Pinnacle used the morning’s announcement of the Five V deal to provide a trading update.

In the first four months of the year its aggregate affiliates’ Funds Under Management (FUM) rose by $1.5 billion from $89.4 billion to $90.9 billion.

Of this, $23bn was retail investors’ money while $67.9bn was institutional money.

Pinnacle accounted it was establishing its first North American based affiliate. While the new affiliate has not been named it will be a global and Canadian small cap equities fund manager based out of Toronto.

Pinnacle will own 32.5% of this new firm with the balance held by the founding executives.

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