Unsolicited expressions of interest to invest in Pinnacle Investment Management (Pinnacle) have prompted its largest shareholder, Wilson HTM Investment Group (Wilson), to seek a strategic partner for the group.
In a statement to the market yesterday, Wilson, which owns 80 per cent of the group, said it intends to begin a formal process to examine a possible strategic partner to Pinnacle.
“The decision to seek external investment into Pinnacle follows receipt of a number of unsolicited expressions of interest, from organisations in Australia and overseas, interested in investing directly into the Pinnacle business to further its growth,” the statement said.
A strategic partner would provide the capital required to assist in growing Pinnacle and creating substantial additional value for all shareholders, it said.
Wilson managing director Andrew Coppin said it was too early to comment on whether the inclusion of a strategic partner would result in the company selling down its stake.
“We have a complete open mind as to what opportunities that may bring. Would it result on the full or partial sale of our 80 per cent in Pinnacle, we don’t know yet,” Coppin said.
“We are open-minded to all the opportunities that prevail. Obviously having been part and instrumental in funding and growing the business to this point, we’d like to think there are potential ways to be involved in the future, but I don’t know if we will or not until we’ve assessed all the opportunities that come out of this process.”
In line with the move, Wilson has appointed corporate adviser Grant Samuel to assist with the process.
“We don’t want to be in a position where they [Pinnacle] are feeling constrained, and the best thing for us to do is to appoint Grant Samuel to assess the market of potential would-be strategic investors,” Coppin said.
The appointment of Grant Samuel follows Pinnacle’s purchase yesterday of an equity interest in Sigma Funds Management.
Pinnacle, which is made up of seven boutiques, has funds under management of $8.9 billion as of 30 September 2011.
