In another first for Pinnacle Investment Management this week, the firm has set up a North American-based affiliate in a small-cap equities fund manager.
The fund manager is based in Toronto, Canada, focused on small caps and other global equities.
Pinnacle joined forces with Greg Dean, the former principal manager at Cambridge Global Asset Management, to establish the yet-to-be named boutique, which is currently in the process of registering with securities regulatory authorities.
Dean finished up at Cambridge after 10 years in May. In Australia, Cambridge forged a partnership with GSFM to distribute the Cambridge Global Smaller Companies Fund.
In the deal, Pinnacle will provide distribution and infrastructure services as it cements its presence in North America.
It will have a 32.5% stake while the founding executives will own the remaining 67.5%.
The North American asset management market is "ripe for disruption", Pinnacle said, noting that 20 of the largest managers in the US manage more than US$40 trillion and none are multi-affiliates.
Pinnacle announced this week that acquiring a 25% stake in Five V Capital has catapulted it into private equities territory.
Some $105 million was raised to fund the transaction via an institutional placement at $16.70 per share, a 4.6% discount on the last price traded on November 22 of $17.50.