Pinnacle's strategic acquisition announcement

Pinnacle Investment Management Group (ASX:PNI) has announced its acquisition of stakes in two asset management firms, VSS Holdings LLC and Pacific Asset Management LLP. This move aims to expand its global reach and diversify its investment portfolio. The company is launching a $400 million institutional placement to fund these acquisitions.

Pinnacle's acquisition strategy and outlook

Pinnacle Investment Management Group has strategically acquired stakes in VSS Holdings LLC and Pacific Asset Management LLP, signaling a significant step toward expanding its international footprint and diversifying its portfolio. The company will acquire a 22.5% stake in VSS for USD 60.5 million and a 25% stake in PAM for GBP 25.75 million. To finance these acquisitions and support future growth, Pinnacle is undertaking a $400 million institutional placement and offering a $25 million share purchase plan. These acquisitions are expected to be earnings per share accretive by FY25, aligning with Pinnacle's strategy to diversify into high-growth asset classes and strengthen its global presence. The firm aims to enhance its capabilities in private markets and international distribution, with expected pro-forma funds under management reaching AUD 145.9 billion.

Executive insights on Pinnacle's acquisitions

The strategic investments in VSS and PAM align with our goal to enhance Pinnacle's presence in global private markets and leverage new capabilities for future growth.