The Pinnacle Investment Management Group Ltd (ASX: PNI) share price is up approximately 2% after a Metrics investment.
Pinnacle is growing a diverse portfolio of investment management firms (affiliates). It invests in these affiliates, and also provides seed funding, global institutional and retail distribution, and industrial grade middle office and infrastructure services.
Metrics investment
Pinnacle announced to the ASX that National Pension Service of Korea (NPS), through a strategic partnership with Townsend Group, has formalised a strategic investment in Metrics Credit.
The partnership has agreed to acquire a 4.17% interest in Metrics for A$50 million. This suggests the overall business is valued at A$1.2 billion.
Proceeds from the investment will “support future growth initiatives of Metrics, including potential acquisitions and the development of new investment strategies”. The partnership will also invest into Metrics’ real estate-focused investment strategies.
What is NPS? It’s the third largest pension fund in the world by total assets, managing more than US$800 billion. Townsend is a leading provider of global investment management and advisory services exclusively focused on real estate and real assets with US$237.9 billion in advised assets and US$20.9 billion assets under management (AUM) as of March 2024.
In other words, these are big players in the asset management, advisory and real estate asset spaces.
Management comments
The Pinnacle Managing Director Ian Macoun said:
Pinnacle also welcomes this new partnership between Metrics and NPS and Townsend. We have been a proud distribution partner of Metrics since 2013 and a keen supporter as a shareholder since 2018.
We have been delighted by Metrics’ growth during that time to become Australia’s leading private markets investment manager; and, importantly, we look forward to continuing our partnership with Metrics to deliver on the multiple future growth opportunities that lie ahead, now alongside NPS and Townsend.
Final thoughts on the Pinnacle share price
The Pinnacle Investment share price has fallen around 30% from 5 February 2025. That’s a large sell-off for a quality business like Pinnacle. I think this is a good time to consider this business because of how likely it is for the business to rebound in the future when confidence in the share market eventually recovers.
As long as Pinnacle continues to experience net inflows rather than outflows of client money, I think the company has an appealing future. I’d be very happy to buy some Pinnacle shares today. It’s possible that the ASX share could drop further, but we can’t know for sure what’s going to happen next. Either way, it could be a really good investment today.
