Pacific Current offloads stake in private credit manager
Pacific Current Group (PAC) has entered into an agreement to sell a portion of its stake in Victory Park Capital Advisors (VPC) to Janus Henderson Group.
In an ASX statement on 13 August, PAC announced its plans to sell 55 per cent of its 24.9 per cent equity stake in VPC and 22 per cent of its 24.9 per cent of future carried interest entitlements in VPC’s funds yet to be launched to Janus Henderson.
PAC will receive an upfront consideration of US$33.9 million, before transaction costs, with 75 per cent in cash and 25 per cent in Janus stock.
VPC was founded in 2007 and is headquartered in Chicago. With US$6 billion in assets under management as of 30 June 2024, the firm provides customised private credit solutions to established and emerging businesses.
Following the sale, PAC will retain a 11.2 per cent stake in the global private credit manager’s management company and 19.4 per cent of the carried interest entitlements on new funds.
Moreover, PAC will maintain its current 24.9 per cent of carried interest entitlements for the firm’s existing funds and funds currently being raised.
Tony Robinson, PAC chairman, said the announcement is an exciting development for all parties involved. “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,” he commented.
By acquiring a majority stake in VPC, Janus Henderson will see expansion in its private credit and institutional capabilities for clients. The partnership is highly synergistic and will allow for mutually beneficial growth opportunities, the asset manager stated.
Ali Dibadj, Janus Henderson chief executive, explained: “As we continue to execute on our client-led strategic vision, we are pleased to expand Janus Henderson’s private credit capabilities further with Victory Park Capital.
“Asset-backed lending has emerged as a significant market opportunity within private credit, as clients increasingly look to diversify their private credit exposure beyond only direct lending. We believe this acquisition will enable us to continue to deliver for our clients, employees, and shareholders.”
Richard Levy, CEO, CIO and founder of VPC, added that the partnership will enable the company to scale faster, diversify its production offering, expand its distribution and geographic reach, and bolster its proprietary origination channels.
The acquisition is set to reach completion in the fourth quarter of 2024 and is subject to customary closing conditions, including regulatory approvals.
Janus Henderson expects the deal to be neutral-to-accretive to earnings per share in 2025.
Earlier this year, asset manager GQG Partners made its first foray into private markets with the acquisition of minority interests in three US-based affiliates of PAC: Avante Capital Partners, Proterra Investment Partners, and Cordillera Investment Partners.
These will form the basis of a new GQG Private Capital Solutions (PCS) division, which will operate independently from the firm’s equity business.
Last year, GQG had also tried to acquire PAC in a bidding war with Regal Partners but was ultimately unable to secure the approval of its largest shareholder, River Capital, and withdrew its bid.
AUTHOR
Jasmine Siljic
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