ASX-listed manager invests in US private equity
Australian Securities Exchange (ASX)-listed multi-boutique asset management firm, Pacific Current Group, has bought a 35% stake in the US-based alternative investment manager, Banner Oak Capital Partners.
Pacific Current said in the announcement made to the ASX that it had made the initial investment of US$35 million ($48.2 million) and that the agreement also included an “earn out” provision that could result in Banner Oak receiving additional consideration of up to US$5 million.
The transaction was classified as a Tier 1 investment and would have no impact on the day-to-day management or operations of Banner Oak.
Banner Oak, which spun out of Hunt Realty Investments in 2016, was engaged with the US pension fund to provide investment capital into real estate operating companies and their projects. The firm currently managed $5.7 billion in assets across its platform.
Pacific Current’s chief executive and chief investment officer, Paul Greenwood, said: “Banner Oak is a unique manager with a distinctive value proposition and a stellar track record.
“We believe the manner in which institutional private real estate investing is evolving bodes very well for Banner Oak’s approach of partnering with real estate operators.”
AUTHOR
Oksana Patron
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
