Pacific Current Group (ASX: $PAC) strategic initiative announcement

Pacific Current Group Limited (ASX: $PAC) (PAC) has announced a strategic initiative aimed at maximizing value for its shareholders. The company has entered into agreements to externalise investment management by appointing an affiliate of GQG Partners Inc. (ASX: $GQG) to provide investment management services to PAC and has also agreed to sell three boutique investments to another affiliate of GQG (Buyer). The majority of PAC's US-based employees, including the investment team led by current PAC Managing Director, Chief Executive Officer and Chief Investment Officer Paul Greenwood, would become full-time employees of GQG, ensuring continuity while providing PAC a significantly lower cost structure more appropriate for the nature of its portfolio going forward.

PAC Chair Tony Robinson's commentary on the strategic initiative

The Pacific Current Board believes this initiative delivers significant strategic and operational flexibility along with a meaningful release of capital. Externalisation of investment management to an affiliate of GQG allows PAC to reduce overall costs and convert a significant proportion of expenses from fixed to variable during a period of portfolio reshaping, while providing continuity of personnel to oversee PAC's current portfolio. Further, having closely reviewed our portfolio as part of the strategic transaction process undertaken by PAC last year, we believe the Boutiques Sale to an affiliate of GQG represents attractive value for Proterra, Cordillera, and Avante, and an opportunity to monetize part of the portfolio for the benefit of shareholders and provide additional firepower for potential future capital management. We are confident the remaining investment portfolio has attractive value upside relative to PAC's current share price.

Summary of Pacific Current Group's strategic initiative announcement

Pacific Current Group (ASX: $PAC) has announced a strategic initiative to externalise investment management and sell three boutique investments to an affiliate of GQG Partners Inc. The company aims to reduce overall costs, provide continuity in managing its current portfolio, and monetize part of the portfolio for the benefit of shareholders. The PAC Board is considering the most appropriate uses of the proceeds from the Boutiques Sale, with a significant amount anticipated to be returned to PAC shareholders. The company received shareholder feedback and believes the Proposal will achieve the desired outcome by substantially reducing PAC's expense structure, maintaining continuity in portfolio management, preserving optionality for future investments, and retaining investments with attractive value upside relative to PAC's current share price. Shareholders will vote on the Proposal at an extraordinary general meeting in April 2024. PAC is being advised by Flagstaff Partners, Allens, and Sidley Austin.