Pacific Current Group's Sale of Interest in Victory Park Capital Management

Pacific Current Group Limited (ASX: $PAC) has announced the sale of a portion of its interests in Victory Park Capital Advisors, LLC. to Janus Henderson Group (NYSE: JHG). The transaction involves selling 55% of PAC's 24.9% equity stake in Victory Park and 22% of PAC's 24.9% of future carried interest entitlements in VPC's funds yet to be launched. In return, PAC will receive upfront consideration of US$33.9m, with 75% in cash and 25% in Janus stock. Following the transaction, PAC will retain an 11.2% stake in VPC's management company and 19.4% of the carried interest entitlements on new funds.

Executive Commentary on the Transaction

This is an exciting development for both Victory Park and PAC. It is a wonderful opportunity to realise a portion of our investment at a great valuation while maintaining exposure to the growth in the business going forward.

Summary of Pacific Current Group's Announcement

Pacific Current Group (ASX: $PAC) has entered into an agreement to sell a significant portion of its interests in Victory Park Capital Advisors, LLC. to Janus Henderson Group. The transaction involves selling 55% of PAC's equity stake in Victory Park and 22% of its future carried interest entitlements in VPC's upcoming funds. In exchange, PAC will receive upfront consideration of US$33.9m, comprising 75% cash and 25% Janus stock. Additionally, there is a provision for an earnout payment of up to US$28.7m based on certain VPC gross revenue milestones. The company's Chairman, Tony Robinson, expressed enthusiasm for the deal, highlighting the opportunity to realize a portion of the investment at a favorable valuation while retaining exposure to the business's growth. The transaction is expected to close in the coming months, subject to certain consent processes.