VSS details Pinnacle stake, plus American Securities portco scoops up AI specialist

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VSS details Pinnacle stake, plus American Securities portco scoops up AI specialist

Good morning dealmakers, it’s Obey Martin Manayiti with the US edition of the Wire from the New York newsroom.

Temperatures are falling, and I can see some tiny snowflakes as I write this newsletter. And on the dealmaking front, the fundraising cold spell has led some GPs to seek new partners to expand.

We are opening the newsletter today with a look at how Pinnacle Investment Management’s global distribution capabilities prompted VSS Capital Partnersto say yes after saying no to other suitors. The Australian Securities Exchange-listed listed investment management group took a minority stake in VSS. I spoke with VSS’s Jeffrey Stevenson to learn how the partnership will work.

Next, we the news that an American Securities-backed company has acquired Smartech, a technology company that provides AI-driven autonomous manufacturing products. Over the course of the year, we have seen many PE- backed companies vying for AI-related companies, and we are expecting more next year.

Finally, I have insights from a senior analyst at RSM US on factors that financial services companies should consider to prepare for potential tax changes under the next administration.

Global distribution capabilities

VSS Capital Partners recently agreed to sell a minority stake in the firm to Pinnacle Investment Management in part because the latter’s global distribution ability will be an asset at a time when the fundraising environment is becoming harder, Jeffrey Stevenson, a managing partner at VSS, told me.

Please upgrade to the premium version of the Wire to learn more on this deal.

Smart manufacturing

American Securities portfolio company Hexion announced earlier this morning that it has acquired Smartech, a technology company that provides AI-driven autonomous manufacturing products.

Premium subscribers to the Wire have access to more on this deal.

Big change

Daniela Cohen, a financial services senior analyst at RSM US, is offering a word of advice on what financial services companies should consider in 2025 under the new administration.

Premium subscribers to the Wire can learn more from RSM US’s analysis.

That’s it for me today. As always, I’d love to hear from you at obey.m@pei.group.

Craig McGlashan will bring you tomorrow’s Europe Wire, while Rafael Canton will bring you the US edition.

Cheers,

Obey

Also of note (may require subscriptions)

Quilvest Capital Partners is optimistic looking ahead to the new year, but expects 2024’s challenges to persist, chief executive officer Alexis Meffre told PE Hub in the latest of its 2025 Outlook pieces. "As inflation cools and interest rates potentially ease after 2024's period of elevated rates – easing only in the last couple of months – the economic landscape should be more supportive of dealmaking activity."

It was evident at this year’s Responsible Investment Forum: Europe that the conversation has shifted from how to gather ESG data to how to make best use of it. To that end, several GPs are now taking steps to show the portfolio companies how they stack up against their peers. (New Private Markets)

Redevco remodeled: From family to fiduciary. Although part of a 183-year-old family business, the Dutch asset manager is the new kid on the block when it comes to third-party capital management. (Private Equity Real Estate)

Now in its second year, Infrastructure Investor highlights the people the industry thinks will be its future leaders with its Rising Stars of Infrastructure list.

Specialist impact investing firm Blue Earth Capital has raised $113 million for its first evergreen private credit fund, the firm said on Tuesday. (New Private Markets)

They said it

“Pinnacle is there for two things; they have invested $60.5 million onto the balance sheet of the firm that we will use to increase our capital commitments for the future funds, and secondly, they will help us with capital raising with their global distribution capabilities.”

— Jeffrey Stevenson, a managing partner at VSS said regarding the recent deal in which Pinnacle Investment Management is taking a minority stake in his firm.