- Pacific Current Group (PAC) purchases a 35 per cent stake in Banner Oak Capital, a private equity real estate firm based in Dallas, US
- The company will make an initial investment of US$35 million (A$48.2 million) with an earn out provision which could mean additional payment of up to US$5 million (A$6.95 million)
- Banner Oak is a Dallas based alternative investment manager focussed on real estate.
- It currently manages $US5.7 billion in assets across its platforms
- Shares are trading 0.96 per cent higher at $7.38 each
Pacific Current Group (PAC) has purchased a 35 per cent stake in Banner Oak Capital Partners.
Banner Oak is a Dallas based alternative investment manager focused on real estate. It currently manages $5.7 billion in assets across its platform.
Pacific Current will make an initial investment of US$35 million (A$48.2 million). The agreement has an earn-out provision which could see Banner Oak receive an additional payment of up to US$5 million (A$6.95 million).
PAC will receive 35 per cent of the company’s earnings, excluding carried interest. The agreement includes provisions that provide PAC with more than its 35 per cent pro-rata share of Banner Oak earnings in the initial years of the investment.
Pacific Current expects the investment to contribute about 25 per cent to its FY21 underlying net profit before tax.
The transaction will have no impact on the day-to-day management operations of Banner Oak. Pacific Current will acquire a passive, non-voting minority interest.
Banner Oak Founder Patricia Gibson is pleased with the strategic relationship forming between the companies.
“Their long term approach to the investment management business, strong
culture and deep expertise represent an excellent fit for Banner Oak,” she said.
“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 are trading 0.96 per cent higher at $7.38 each at 12.21 pm AEDT.