Global multi-boutique asset management firm Pacific Current Group (ASX:PAC) has entered into a definitive agreement to purchase a minority equity stake in California headquartered private credit and structured equity investment management firm Avante Capital Partners, based in Los Angeles, California.
Founded by Jeri Harman in 2009, Avante was established with the vision of creating a unique private markets manager – one that harnesses the power of diversity. Supporting top tier sponsors and management teams in the U.S. lower middle market, Avante provides private credit and equity solutions to high-quality companies underpinned by strong management teams and attractive financial profiles. The firm invests across the capital structure, including unitranche debt, synthetic unitranche debt, 2nd lien debt, mezzanine debt and minority equity. Avante has invested nearly $1 billion of capital since inception.
PAC is acquiring a 24.9% equity interest in Avante for up to US$40 million, with US$15m paid at closing, US$13m paid one year after closing, and up to an additional US$12 million subject to growth milestones. PAC estimates its investment will yield between US$1.5m – US$2.5m from management fees in CY24. 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.
We couldn’t be more excited to enter into a partnership with Avante. 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 CEO and CIO, Paul Greenwood, said.
It is expected that all conditions will be satisfied in order for completion of the investment to occur by the end of September 2023.
Ardea Partners served as the exclusive financial advisor to Avante on this transaction.