Pinnacle Investment Management Group Limited (ASX: PNI) (“Pinnacle”) is pleased to announce a major step forward in its international expansion strategy, revealing the acquisition of strategic interests in two leading global asset management firms for a combined total of A$142.8 million. These acquisitions, alongside a fully underwritten $400 million institutional placement, are set to bolster Pinnacle’s growth in both international markets and private capital sectors.
Acquisitions of VSS Holdings and Pacific Asset Management
Pinnacle has acquired 22.5% equity in VSS Holdings LLC (VSS), a New York-based private markets investment management firm specializing in structured capital, for US$60.5 million. This acquisition offers Pinnacle exposure to VSS’s US$656 million in committed capital and a strong foothold in the US lower mid-market. VSS is known for top-decile performance and its investment team’s expertise in growth financing, recapitalizations, and strategic acquisitions.
Additionally, Pinnacle has secured 25% equity in Pacific Asset Management LLP (PAM), a London-based asset management platform, for £25.75 million. PAM provides technology-driven, multi-asset portfolio solutions and distribution services for boutique asset managers. This partnership will enhance Pinnacle’s international private wealth footprint and support its global expansion into key markets, including the UK and Europe.
Strategic and Financial Impact
Both acquisitions align with Pinnacle’s ongoing strategy of global diversification and exposure to private capital. These investments are expected to be EPS accretive on a pro-forma FY25F NPAT basis, further enhancing Pinnacle’s international assets and private markets portfolio, which currently totals A$145.9 billion across 18 Affiliates. The firm also expects significant growth potential from both VSS and PAM, with new capital raising efforts underway, including a US$800 million Fund V for VSS in 2025.
Equity Raising to Support Strategic Growth
In tandem with these acquisitions, Pinnacle has launched a $400 million fully underwritten institutional placement, which will help fund the investments in VSS and PAM, as well as seed new strategies for existing affiliates. The placement will also support the Horizon 2 and Horizon 3 growth initiatives. Pinnacle has also announced a $25 million non-underwritten share purchase plan (SPP), offering eligible shareholders the opportunity to acquire shares at the same price as the placement.
The placement involves the issuance of approximately 19.7 million New Shares at $20.30 per share, which represents a 5.3% discount to the last closing price. The proceeds from the placement will primarily be allocated as follows:
- ~$143 million to fund the strategic investments in VSS and PAM
- ~$75 million to seed new strategies for existing affiliates
- ~$182 million to support further growth initiatives and expansion
Commentary from Pinnacle Leadership
Pinnacle Managing Director Ian Macoun highlighted the strategic significance of these acquisitions, stating: “These transactions not only accelerate our international growth but also provide us with diversification into high-growth asset classes. We are excited to partner with VSS and PAM, both of which have proven track records of growth and performance.”
VSS Founder Jeffrey Stevenson also expressed confidence in the partnership, emphasizing Pinnacle’s strength in global distribution and its expertise in private markets as key drivers of VSS’s future growth.
Similarly, Matthew Lamb, CEO of PAM, spoke highly of the partnership, stating: “Having Pinnacle as a shareholder will bring unparalleled value and expertise, helping us achieve our long-term goals in the evolving asset management landscape.”
Pinnacle’s Strategy Going Forward
This expansion into international markets and private capital is consistent with Pinnacle’s broader strategy of diversifying its global platform. The company remains committed to supporting its affiliates while actively seeking new opportunities to accelerate growth, particularly in private markets and alternative strategies.
Pinnacle’s strong momentum in FY25 is driven by continued success in both domestic and international markets, along with robust performance from its Affiliates, contributing to significant net inflows and performance fees. The firm is well-positioned to leverage its expanded platform to drive future growth and further extend its leadership in the global asset management industry.
Next Steps and Outlook
Pinnacle’s acquisitions of VSS and PAM, coupled with the equity raising, underscore the company’s commitment to accelerating its international growth and broadening its diversification across asset classes. The successful integration of these strategic partnerships will serve as a foundation for Pinnacle’s continued expansion, with a strong focus on long-term value creation for both investors and stakeholders.
