Australian private markets manager detracts from Pacific Current FUM
Pacific Current (PAC) has seen a slight decrease in funds under management (FUM), driven by outflows from an Australian partner.
In a quarterly FUM update for the three months to 30 September, the firm said funds managed by its boutique asset managers declined from $42.5 billion to $41.5 billion.
The firm said this was driven by a 1.4 per cent decrease at its Australian fund manager due to a $300 million reduction in distribution and market revaluations, which was offset by $200 million in new commitments.
FUM at the private markets firm Roc Partners, which manages capital for institutions and superannuation funds, decreased from $8.54 billion to $8.42 billion. The firm offers private equity, private credit and real asset strategies.
In the previous quarter, Roc saw FUM rise 4 per cent from $8.21 billion to $8.54 billion.
PAC described Roc as one of four Tier 2 asset managers that it expects to generate less than $4 million in annual pre-tax earnings for the company over the next three years.
The remainder of Pacific Current boutique managers – Banner Oak, Carlisle, Pennybacker, Victory Park, Aether, Astarte and EAM – are based in the US.
It has previously described how its focus in FY25 will include opportunities to increase investment in current boutique partners where the potential exists to accelerate growth and other new growth investments.
During the quarter, the firm sold its interest in Carlisle to alternative asset manager Abacus Life in July and divested Victory Park Capital to asset manager Janus Henderson in August.
This followed the sale of three of its assets earlier in the calendar year to GQG Partners – which previously made an unsuccessful bid to acquire the whole firm – in Avante, Cordillera and Proterra for US$71.2 million.
Pacific Current chief executive Michael Clarke said: “PAC’s partner boutiques delivered a sound fundraising result in the September quarter resulting in a solid start to the new financial year.”
As a result of the multiple divestments, the firm stated it is “flush with cash” and will be enacting an estimated $300 million share buyback due to take place in late 2024 or early 2025 to return capital to shareholders.
AUTHOR
Laura Dew
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