Pinnacle takes 25% of Coolabah
In what represents a strategic development, Pinnacle Investment Management has entered into agreement to acquire 25% of Christopher Joye’s Coolabah Capital.
Pinnacle announced the transaction to the Australian Securities Exchange (ASX) stating it was acquiring all of the equity in Coolabah currently owned by AMB Capital Partners which is the private investment business of the Bennett Family.
The terms of the arrangement will see Pinnacle acquire a 25% interest in Coolabah for $29.1 million together with a further $5 million upon the business achieving certain milestones over the next 18 months to 4.5 years.
CCI and Pinnacle have also entered into a global distribution partnership in which Pinnacle will share revenues from capital raised in the institutional, retail and offshore distribution channels.
Commenting on the transaction, Pinnacle managing director, Ian Macoun said that partnering with Coolabah was consistent with Pinnacle’s strategy.
He said their offerings did not overlap with those of existing Pinnacle Affiliates and the acquisition further diversified Pinnacle’s portfolio of affiliates particularly in fixed income and alternatives.
For his part, Joye said Coolabah had been impressed by what Pinnacle had achieved, building a $60 billion stable of some of the nation’s leading institutional and retail fund managers across a variety of different asset classes.
Joye was recently announced as one of Australia’s inaugural FE fundinfo alpha managers. FE fundinfo is the owner of Money Management.
Recommended for you
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
