Why fund managers disagree on Pinnacle's private credit sell-off

Governance concerns at one of Pinnacle Investment Management's affiliates triggered a 29% share price fall, even though private credit represents only around 10% of group profits.

30 Jun 2026 · 6 min read

Multi-affiliate fund manager Pinnacle Investment Management has seen its share price swing sharply on concerns about private credit sector governance, even as Oracle Advisory Group's September 2025 Quarterly Report described the compounding machine management has built, with more than $170 billion in funds under management across its affiliates giving Pinnacle the scale to attract the highest-quality fund managers, including new affiliate LifeCycle, which reached $15 billion of funds under management within its first eight months, the fastest of any Pinnacle affiliate to hit that milestone.

A strong FY25 result overshadowed by private credit concerns

SG Hiscock & Company's August 2025 Monthly Report detailed shares initially popping 9.4% on a strong FY25 result before giving back those gains and more over the month, as investors focused on the sustainability of outsized contributions from affiliate Hyperion and the pace of profitability at Metrics' newer asset-based finance platform. Ellerston Capital's September 2025 report identified the specific trigger for a deeper slide: a major research house downgraded several Metrics Credit Partners funds after raising governance concerns, coinciding with ASIC's broader review of the private credit sector and freeze actions against unrelated manager La Trobe Financial's private funds, denting sentiment across the sector.

With more than $170bn in funds under management amongst their affiliates, the scale of the company means they can attract the highest quality fund managers to become affiliates.

— Oracle Advisory Group, Quarterly Report, September 2025

Smallco Investment Manager's September 2025 Quarterly Report quantified the resulting drawdown at a 29% fall from Pinnacle's August high, while arguing private credit, though a growth driver, represents only around 10% of current group profits, suggesting the sell-off had outpaced the actual earnings exposure to the troubled segment. LSN Capital Partners' November 2025 Monthly Report pointed to a fresh growth avenue beyond the domestic affiliate model: a strategic partnership in Japan involving the acquisition of up to 13% of Advantage Partners, providing access to Japan's US$10 trillion pension market.

What managers are watching next

Views on the stock have diverged through 2026. LSN Capital Partners increased its position in March 2026, tilting toward more market-supported exposures, while Oracle Advisory Group reduced its holding the same quarter. Perpetual Asset Management's February 2026 Monthly Report captured the contrarian case succinctly, establishing a new position on the view that Pinnacle's growth prospects were being masked by near-term uncertainty around a couple of underperforming affiliates, even as ALC Capital ran a profitable short position over the same period on intensifying private credit sector concerns.