Acquisition of interest in Advantage Partners

Pinnacle Investment Management Group Limited (ASX: PNI) (“Pinnacle”) is pleased to announce that it has reached agreement to acquire a strategic interest in Advantage Partners, the largest independent, diversified private markets platform in Japan.

Pinnacle has agreed to acquire up to 13% of Advantage Partners over a 3-year period via an initial 5% stake ¹ for A$92m and an option over a further 8% at similar valuation.

Pinnacle invests alongside Advantage Partners’ existing strategic partner, Tokyo Century (TSE: 8439), with Managing Partners and staff retaining a majority stake. The combination of Pinnacle’s global distribution and Tokyo Century’s domestic and international networks and balance sheet commitment to Advantage Partners funds sets Advantage Partners up for accelerated growth with strong shareholder support.

Pinnacle will additionally enter into a Business Alliance Agreement and Distribution Services Agreement with Advantage Partners covering global distribution of their strategies, working alongside Advantage Partners’ in-house investor relations team and existing blue-chip LP base.

Advantage Partners is the largest independent, locally-grown, diversified private markets platform in Japan. It provides a unique regional private markets footprint and lifts and deepens Pinnacle’s presence and participation in one of the world’s largest pension and insurance markets. The partnership is aligned with Pinnacle’s objective to diversify internationally and increase exposure to global private assets, particularly in the attractive mid-market area, following the recent acquisition of an interest in VSS in the US and established partnerships with Metrics, Five V, Palisade, and Riparian.

Advantage Partners has strong organic growth potential, with near term growth driven primarily by larger fund raises of JBO and Private Solutions funds, expected to take group FUM from approximately US$3bn to US$6.5bn+ over the next 12 months, and an attractive financial profile, with substantial exposure to performance/carry fees.

This new partnership further demonstrates the increasing power of Pinnacle’s global platform in attracting world-class investment managers and further enhances Pinnacle’s diversification into private capital and international markets.

Pinnacle Managing Director, Ian Macoun, commented on the new partnership:

“We have made great progress in exporting our unique multi-affiliate model globally. This transaction underscores our ability to partner with world-class teams with unique platforms in highly attractive asset classes and geographies.

“Advantage Partners has a client-centric culture and has an exceptional track record relative to global and regional peers. After engaging with the teams over many months, we have great confidence in the firm’s ability to deliver sustained excellence well into the future. The partnership also deepens and underscores our commitment to the strategically important Japanese market, which we hope will further accelerate our growth in the region.”

Taisuke Sasanuma and Richard L. Folsom, Co-Founders, Advantage Partners, commented:

“We are pleased to welcome Pinnacle as a shareholder in Advantage Partners. Through our interaction with Pinnacle and Affiliates, we have been impressed by how they have supported their partners in responsibly scaling their strategies while maintaining strong alignment with investors. This partnership represents another step in the continued institutionalization of our firm and supports our goal of building a sustainable platform that can serve our stakeholders for decades to come.”

1. 1. The initial 5% strategic interest is being acquired from certain Managing Partners and staff of Advantage Partners and will be funded from existing cash and investments. Completion is expected to occur in January 2026. ↩

This announcement was authorised for release to the ASX by the board of directors of Pinnacle.