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Five V Capital’s Adrian MacKenzie. Source: Five V Capital.
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  • Pinnacle Investment Management Group (PNI) to invest $65 million into private equity firm Five V Capital for a 25 per cent stake
  • To pay for the investment, Pinnacle is looking to raise $105 million through a placement
  • Under the raise, the company will issue around 6.3 million new shares for $16.70 each, a 7.6 per cent discount to the five day volume-weighted average price
  • Additionally, following the placement, Pinnacle will also offer eligible shareholders the opportunity to purchase up to $30,000 worth of new shares via a share purchase plan
  • Pinnacle has now entered into a trading halt while it undertakes the placement, with company shares last trading at $17.50

Pinnacle Investment Management Group (PNI) is eyeing a $65 million investment into Five V Capital.

The company have agreed to subscribe for convertible preference shares that will give Pinnacle a 25 per cent stake in the Australian based private equity firm.

Five V Capital is owned by Adrian MacKenzie and Srdjan Dangubic, who are well known in the private equity space in the last decade. The business has $1.1 billion in funds under management. There will be no sell-down by the duo.

To pay for the investment, Pinnacle is looking to raise $105 million through a fully underwritten institutional placement.

Under the raise, the company will issue around 6.3 million new shares for $16.70 each, a 4.6 per cent discount to Pinnacles last closing price.

Funds from the raise will also be spent to replenish balance sheet capacity and to fund the 25 per cent stake in Coolabah in 2019.

Concurrently with the placement, Adrian Whittingham will be conducting a fully underwritten sell down of 875,000 Pinnacle shares at the placement price, which is worth $14.6 million.

Additionally, following the placement, Pinnacle will offer eligible shareholders the opportunity to purchase up to $30,000 worth of new shares via a share purchase plan.

Pinnacle’s Managing Director, Ian Macoun, is pleased to have the opportunity to partner with the Five V Capital team.

“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,” Mr Macoun said.

“The investment made today ensures a strong degree of alignment between Pinnacle, the existing Five V principals and the broader investment management team.”

Pinnacle has now entered into a trading halt while it undertakes the placement. This means company shares will be paused until Thursday, November 25.

On the market, Pinnacle last traded at $17.50 per share.

PNI by the numbers
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