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Pacific Current sells stake in investment firm to Goldman Sachs

Pacific Current Group (PAC) has sold a portion of its interest in Pennybacker Capital Management to Goldman Sachs Asset Management's Petershill program.

PAC has sold 55% of its 16.5% equity stake in Pennybacker and all its 2.5% carried interest entitlement for Pennybacker funds launched after PAC's initial investment.

PAC will receive around US$35.2 million (AU$53.3 million), comprised of US$4.8 million at closing, followed by equal payments of around US$15.2 million on both the first and second anniversary of the transaction.

PAC said actual proceeds could vary modestly based on final transaction costs. As at 31 December 2023, PAC's estimate for the fair value of its Pennybacker stake was US$57.2 million.

"This is an exciting development for both Pennybacker and PAC, and it is wonderful validation of the value the Pennybacker team has created and continues to build," PAC chief executive and chief investment officer Paul Greenwood said.

"We look forward to many more years of Pennybacker creating value for both its investors and shareholders."

Pennybacker chief executive Timothy Berry said the transaction marks the next phase of the firm's growth.

"With additional capital and a value-add partner, we look forward to extending our strong track record, while continuing to develop the culture and team that have contributed to our success," he said.

Co-head of Goldman Sachs Asset Management's Petershill program Robert Hamilton Kelly said: "Our aim is to partner with best-in-class firms and Pennybacker has developed the investment and organisational capability to be properly recognised as such. We're looking forward to this partnership and helping Pennybacker realize continued success."

Pennybacker is a US-based real assets investment firm with around US$4 billon in assets under management. It pursues real estate and infrastructure strategies through closed and open-ended vehicles.

Read more: PACGoldman Sachs Asset ManagementPacific Current GroupPetershillPennybacker Capital ManagementPaul GreenwoodRobert Hamilton KellyTimothy Berry