Pinnacle Investment Management experienced a 7 per cent surge in its share price on Wednesday following the release of its full-year results. The $5.2 billion investment firm reported a net profit of $134.4 million, a substantial 49 per cent increase compared to the previous year. This result aligns closely with market expectations. Pinnacle Investment Management provides its affiliated fund managers with distribution and support services. It also takes strategic stakes in a select number of high-calibre investment management businesses.
The company’s earnings per share (EPS) also met expectations, coming in at 62.4¢. In light of the strong performance, Pinnacle declared a full-year dividend of 60¢ per share. The company’s affiliate funds generated $153 million in performance fees throughout the year, representing a 40 per cent increase from the previous year’s figures. Shareholders are entitled to $46.6 million of these fees, based on their ownership stakes in the respective funds.
Pinnacle also reported significant growth in assets under management (AUM), which reached $179.4 billion. The money managers, in which Pinnacle holds minority stakes, successfully raised $23.1 billion in new funds. This influx of new capital contributed significantly to the overall increase in AUM.
