Asset manager Pacific Current Group (ASX:PAC)
has snapped up a 35 per cent stake in US- private equity real estate player Banner Oak for $48.2 million (US$35 million).
The deal will enable Pacific Current Group to bank a US$5 million earnout if Banner Oak hits performance targets by 2025. Also, the company is slated to receive more than its pro-rata share of Banner Oak’s earnings until such time in the initial years of the investment. As part of the terms, Pacific’s investment into the asset manager is on a passive non-voting minority basis.
Banner Oak has 12 investment vehicles to the value of US$5.7 billion in assets under management with its stake joining Pacific Current’s portfolio of 15.
Banner Oak founder, Patricia Gibson said that “we are extremely pleased to be entering into a strategic relationship with Pacific Current. Their long term approach to the investment management business, strong culture and deep expertise represent an excellent fit for Banner Oak. As we enter the next phase of Banner Oak’s evolution, we believe this relationship will position us to achieve the next level of disciplined growth”.
Shares in Pacific Current Group (ASX:PAC)
are trading 1.6 per cent higher at $7.43.