The two-man private equity boutique at Pinnacle Investment Management is fundraising to meet a March deadline to buy the first asset of its ‘seeded primary fund’.
Pinnacle Private Equity (Pinnacle PE), run by former AMP Capital private equity managers Bill Cook and Peter Ludemann, is searching for commitments before the window to buy an asset from a larger manager closes in March.
The boutique aims to raise $250 million for the fund, although it is understood significantly less would be required to buy the initial asset, which Cook and Ludemann have already attempted to buy as part of a larger deal.
In 2009, the boutique raised $178 million to buy three assets held by the other private equity manager, since “the feedback from investors in Australia and offshore … was that if they were going to deploy capital it would be more opportunistic, something more of a secondary nature,” Andrew Findlay, director at Pinnacle Investment Management, said.
But the deal fell through when the seller refused to offload the assets – except the one that Pinnacle PE now aims to buy. After returning the $178 million to investors, the boutique targeted the asset as the first acquisition in a new “seeded primary fund,” Findlay said.
This means that the secondary asset would not be passively owned, but be actively managed within a portfolio of primary assets.
“We see [it] as primary in the sense that you buy a stake in a company, and you give it more capital to grow. That’s a primary private equity activity,” Findlay said.
Pinncle PE is one of eight boutique fund managers supported by incubator Pinnacle Investment Management.