KKR loses energy for Ausgrid; Life360 y earns for home; Pepper’s taste for raising

Good evening,

Five V Capital is known to be secretive with its deals.

But Tuesday’s transaction with Pinnacle Investment Management still came as a surprise to most.

After all, the private equity boutique was out just last month raising $550 million for its fourth fund, while juggling exits at Zenith Investment Partners and Universal Stores with writing cheques for Penten and Automic Group.

But amid the usual deal-making, Adrian Mackenzie and Srdjan Dangubic struck one closer to home with Pinnacle’s friendly but astute managing director Ian Macoun.

It will be interesting to see how the union plays out over time but for now, watchers are left with an eye-watering price tag – $75 million for a 25 per cent slice is what Pinnacle thought Five V was worth – and some equally eye-watering returns on Five V’s recent exits that Pinnacle published for the world to see.

To summarise: Zenith was expected to make Five V 44 per cent IRR, while Education Perfect tallied up 10x MoM (multiple of money) and Universal Store did 6x.

Elsewhere, Street Talk has heard Life360’s $US205 million acquisition today might pan out into a US-listing next year; KKR has bowed out of the Ausgrid auction; and newly listed non-bank lender Pepper Money had six brokers working on an $800 million ABS issue.

Happy reading,

Anthony Macdonald, Yolanda Redrup and Kanika Sood
Street Talk editors