Pinnacle withdraws proposal for Blue Sky’s fund
Pinnacle Investment has described the announcement made by the Blue Sky Alternative Access Fund (BAF) regarding the possibility that the fund might enter into discussions with Wilson Asset Management (WAM), a competing party, as inconsistent with an earlier agreement between the fund and Pinnacle’s subsidiary, Alterum Investment Management.
In October, Alterum was appointed a manager of the BAF portfolio with effect from the start of the new year. A few weeks later BAF entered into an agreement with its previous manger, Blue Sky Alternative Investments (BLA), which assumed that the management services agreement between the both parties would be terminated to facilitate the Pinnacle’s proposal.
However, BAF announced last week that BLA would not preclude it from entering into further discussions with Wilson Asset Management (WAM), a move described by Pinnacle as inconsistent with “the coo-operative basis on which Pinnacle agreed to proceed with the proposal.”
Pinnacle also stressed that at the Annual General Meeting (AGM) a number of BAF’s shareholders voted against the re-election of independent directors.
Pinnacle said it was very likely at this stage that the new directors would reassess Alterum’s earlier proposal, resulting in a possibly protracted process that would go beyond the 31 December, 2018 deadline.
Following this, Pinnacle and Alterum have announced a termination of the management services agreement and, as a result of that, its proposal has been withdrawn.
AUTHOR
Oksana Patron
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