Pacific Current Group buys into fund managerBY CHLOE WALKER | WEDNESDAY, 20 SEP 2023 12:16PM
Read more: Pacific Current Group, Avante Capital Partners, Custis Yasutake, Ivelisse Rodriguez Simon, Jeri Harman, Paul Greenwood
Pacific Current Group (PAC) has purchased a stake in LA-based private credit and structured equity investment management firm Avante Capital Partners (Avante).
The 24.9% equity interest in Avante cost PAC about $61 million, with $23 million to be paid at closing, $20 million paid one year after closing, and up to an additional $18 million subject to growth milestones.
Founded by financial services executive Jeri Harman in 2009, Avante was established with the vision of creating a private markets manager that harnesses the power of diversity.
Having invested nearly $1.5 billion of capital since inception, Avante provides private credit and equity solutions to high-quality companies underpinned by strong management teams and attractive financial profiles.
Specifically, the firm invests across the capital structure, including unitranche debt, synthetic unitranche debt, second-lien debt, mezzanine debt, and minority equity.
Avante will continue to be overseen by its founders and principals and there will be no changes to its strategies or day-to-day operations.
PAC estimates its investment will yield between $2.3 million and $3.8 million from management fees in CY24.
"We couldn't be more excited to enter into a partnership with Avante," PAC chief executive and chief investment officer Paul Greenwood said.
"The firm's leadership team is truly exceptional and has built a culture that drives an investment sourcing engine that gives the firm a powerful competitive advantage."
PAC vice president Custis Yasutake added that given the breadth and depth of Avent's team, the firm's stellar track record and its differentiated investment process, "we believe Avante is well-positioned to continue to grow their business, as well as their impact on the industry."
Avante managing partner Ivelisse Rodriguez Simon said: "Fourteen years after our founding, my partners and I knew it was the right time to seek a strategic partner to accelerate our growth and amplify our impact. What we didn't know is that we would find a partner so completely aligned with our vision for the future."
"Paul and Curtis truly see our team for who we are: a group of diverse, thoughtful and keen investors who strive for excellence in all we do."
With PAC'S support, she said, Avante will further expand its client base, fundraising and distribution network and enhance its competitive market position.
"We are confident the future of Avante is very bright with PAC alongside us," she said.
PAC is currently the target of its own acquisition deal, with GQG Partners (GQG) and Regal Partners (Regal) alongside River Capital having made competitive bids to acquire it in late July.
Already, Regal is a 12% shareholder on PAC's register and River Capital is PAC's largest investor sits on a 19% stake.
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