Pinnacle Investment Management Group (ASX: PNI) and Riparian Capital Partners Pty Limited have entered into a strategic partnership under which Pinnacle will provide RCP with capital to invest in the business and will give RCP the access to institutional grade non-investment support services. Further, this partnership is representing Pinnacle’s first investment into the agriculture sector.
Established in early 2019, RCP is a Brisbane-based specialised Water, Agriculture and Food investment firm. The company was established by Managing Partner Nick Waters and since the formation of the company, it has been joined by fellow Managing Partner Patrick Hayden. Both of them are having rich experience across the agriculture sector and have worked closely together for several years.
While commenting on the strategic partnership with Pinnacle, Nick Waters told that RCP’s management is pleased to have the strategic support of Pinnacle and they are looking forward to working closely with Pinnacle as they grow the firm to the benefit of agriculture sector investors.
In particular, RCP is pleased with the team which is now in placed as they have a strong working history together and a broad skill set and depth of experience that extends across the agriculture sector. Importantly, RCP has been able to structure the business in a way that ensures complete alignment of outcomes between the team and its investor client.
Currently, RCP is the 13th affiliate of Pinnacle, whose existing stable of investment affiliates account for more than A$50 billion in funds under management. Consistent with Pinnacle’s usual business model it will be a minority investor whilst the majority of equity will be held by the executives of RCP.
RCP is focused on investments backed by real assets that are critical to the production of essential goods. RCP is seeing compelling investment opportunities in Australian agriculture and it is looking forward to working with patient capital to unlock value across the sector.
Pinnacle believes that RCP team is well positioned to provide a range of institutional investors access to this growing asset class.
Pinnacle has consistently stated, it will continue to invest in activities which it believe will going to bring substantial benefits over the medium term, while recognising that such investment may restrain the company’s profits to some degree in the short term.
As at 31 December 2018, Pinnacle had Funds under management of $46.7 billion which is 22.9%b higher than FUM of $38.0 billion at 30 June 2018.
Now, let’s have a glance at Pinnacle’s stock performance and the return it has posted over the past few months. At the time of writing, i.e., on 4 April 2019 AEST 3:52 PM, the stock of the company was trading at a price of A$5.460, down by 0.907% during the day’s trade with the market capitalisation of ~A$1.01 Billion. In the past six months, the share price of the company decreased by 33.54%.
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