Acquisitions ahoy: Soul Pattinson share price in focus

The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price is gaining the attention of investors as news emerges of more potential acquisitions.

This company is a diversified conglomerate invested across an array of different ASX shares and sectors.

Industries represented in the portfolio include telecommunications, building products, property, banks, resources and so on.

In terms of the actual ASX shares in the portfolio, it’s invested in businesses like TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC), Tuas Ltd (ASX: TUA), Pengana Capital Group Ltd (ASX: PCG), Macquarie Group Ltd (ASX: MQG), BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA).

Soul Pattinson also has a growing portfolio of private companies, which are “platforms” for further growth. That includes agriculture, electrical business Ampcontrol, swimming school business Aquatic Achievers and Ironbark Asset Management.

According to reporting by the Australian Financial Review, Ironbark is involved with the potential acquisitions. Ironbark says it delivers a “range of innovative financial solutions including funds management, corporate trustee services and bespoke investment solutions.” Soul Pattinson owned 30.7% of Ironbark at the latest disclosure.

What’s Ironbark doing?

According to the AFR, Soul Pattinson has agreed to fund around $30 million for Ironbark through a capital call structure that was put in place in late June.

This money would be used over time, so its ownership of Ironbark would rise as the capital was used.

The newspaper’s reporting noted that the funds management part of the company attracted money for external fund managers to manage through Ironbark-branded funds. An example of this is New York-based Apis Capital. The wealth advisory segment has reportedly been “taking minority stakes in advice businesses.”

In its FY22 half-year result, Soul Pattinson noted that it had seen an increased profit contribution from Ironbark and expected to “allocate additional capital to expand this portfolio of private investments which in turn provide platforms for further growth.”

The ASX share said there were “multiple avenues for growth in existing and new opportunities” with its private equity portfolio.

Soul Pattinson share price snapshot

Over the last month, the Soul Pattinson share price has risen by close to 10%.

The post Acquisitions ahoy: Soul Pattinson share price in focus appeared first on The Motley Fool Australia.

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More reading

• This is the one ASX share I would spend $10,000 on today
• Here’s why I just bought more Soul Pattinson shares
• Own Soul Patts shares? Here’s what to look out for in FY 2023

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Macquarie Group Limited and TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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