Pinnacle successfully completes $105m placement

Pinnacle has successfully completed a $105 million fully underwritten institutional placement to fund the acquisition of a 25 per cent equity stake in Australian-based private equity firm Five V Capital.

In an ASX listing, Pinnacle confirmed the institutional placement of approximately 6.3 million new shares at $16.70 apiece, equivalent to approximately 3.3 per cent of existing shares on issue.

Pinnacle confirmed that as announced on 23 November, the proceeds from the placement would fund its investment in Five V Capital through the purchase of convertible redeemable preference shares equivalent to a 25 per cent holding, as well as replenish balance sheet capacity that was used to fund the acquisition of the 25 per cent stake in Coolabah in 2019.

“We are very pleased with the success of the placement and the strong support delivered from existing and new institutional shareholders, and we look forward to partnering with the Five V Capital team,” said Pinnacle managing director, Ian Macoun.

Five V, led by principals Adrian MacKenzie and Srdjan Dangubic, specialises in high-growth, technology-enabled companies and has made 15 private equity and 17 venture capital investments to date.

Following the investment, Pinnacle will have exposure to Five V’s Fund III, Fund IV (closed in November 2021) and VC Fund 1, totalling FUM of $1.1 billion, as well as future funds raised by Five V.