Pinnacle’s FY25 NPAT Jumps 49% as It Acquires 5% of Advantage Partners for A$92m

Strategic Expansion into Japan’s Private Markets

Pinnacle Investment Management Group Limited (ASX, PNI) has announced a significant strategic investment in Advantage Partners, Japan’s largest independent and diversified private markets platform. The initial acquisition of a 5% stake for A$92 million marks the beginning of a staged purchase that could see Pinnacle’s holding rise to 13% over the next three years. This move aligns with Pinnacle’s broader international diversification strategy and deepens its exposure to one of the world’s largest pension and insurance markets.

Advantage Partners boasts a strong track record and a unique multi-strategy approach across Japan and Asia, including buyouts, private solutions, and renewable energy investments. With over 140 employees and 90 investment professionals, the firm is well-positioned to capitalize on structural reforms in Japan’s corporate and savings markets, which are expected to drive demand for private equity and related asset classes.

Robust FY25 Performance and Growth Trajectory

Pinnacle’s FY25 financial results underscore the strength of its multi-affiliate platform. The company reported a 49% increase in net profit after tax (NPAT) to $134.4 million and a 37% rise in diluted earnings per share. Record net inflows of $23.1 billion, including substantial contributions from new affiliates like Life Cycle Investment Partners and Pacific Asset Management, have propelled funds under management (FUM) to $179.4 billion at June 30, 2025.

Performance fees also surged, with Pinnacle’s share rising to $46.6 million, reflecting the outperformance of its affiliate strategies. The company’s deliberate investment in Horizon 2 and Horizon 3 initiatives, focused on incubating new affiliates and acquiring stakes in established managers, continues to diversify earnings and expand its global footprint.

Leveraging Global Partnerships and Distribution

The partnership with Advantage Partners is enhanced by Pinnacle’s global distribution capabilities and Tokyo Century Corporation’s domestic and international networks. Advantage Partners’ founders and staff retain majority ownership, ensuring operational independence while benefiting from Pinnacle’s and Tokyo Century’s strategic support. This alliance is expected to accelerate Advantage Partners’ growth, with fund raises projected to nearly double group FUM from approximately US$3 billion to over US$6.5 billion within 12 months.

Pinnacle’s Managing Director, Ian Macoun, highlighted the cultural and strategic fit, emphasizing the firm’s confidence in Advantage Partners’ ability to deliver sustained excellence and the importance of the Japanese market in Pinnacle’s international growth agenda.

Sustainability and Corporate Responsibility

Alongside its growth initiatives, Pinnacle reaffirmed its commitment to sustainability and corporate responsibility. The firm continues to integrate ESG principles across its affiliates and operations, supports philanthropic partnerships through the PNI Foundation, and pursues gender equality and climate-related goals. This holistic approach aims to build a resilient and inclusive firm aligned with evolving investor expectations.

Outlook and Market Positioning

With a strong balance sheet, diversified affiliate base, and a clear three-horizon growth strategy, Pinnacle is well-positioned to capitalize on global investment opportunities. The acquisition of Advantage Partners complements recent investments in the US and UK, reinforcing Pinnacle’s ambition to be a leading global multi-affiliate investment management group. Investors will be watching closely how these international expansions translate into sustained earnings growth and market share gains in the increasingly competitive private markets landscape.