Pacific Current Group acquired a 35% passive, non-voting minority stake in private equity real estate specialist Banner Oak Capital Partners.
The multiboutique asset manager's initial investment in Banner Oak on Dec. 31 was $35 million, said Margaret Chang, Pacific Current Group's director of marketing, in an interview.
The agreement between the two firms includes an earn-out provision that could provide Banner Oak with an additional investment of up to $5 million over time.
"Banner Oak is a unique manager with a distinctive value proposition and a stellar track record. We believe the manner in which institutional private real estate investing is evolving bodes very well for Banner Oak's approach of partnering with real estate operators," said Paul Greenwood, a managing director, CEO and CIO of Pacific Current Group, in a news release.
Banner Oak has $5.7 billion of assets under management and is the 16th boutique money manager that Pacific Current Group has invested in. Assets managed by the 16 firms in Pacific Current Group's boutiques totaled $109 billion as of Sept. 30.