Pacific Asset Management has agreed to acquire the entire share capital of Asset Value Investors (AVI), becoming the institutional partner of the independent boutique fund manager.
The combination links two investment management firms, with Pacific providing infrastructure, technology, operations and investor support, while AVI continues its engagement-led, bottom-up investment approach focused on companies trading below net asset value.
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The deal also includes Pacific’s purchase of the roughly 25% holding in AVI currently owned by Goodhart Partners.
Founded in 1985, AVI has pursued a concentrated strategy that does not track benchmarks.
Joe Bauernfreund, the firm’s chief executive and chief investment officer, joined in 2002.
He manages AVI Global Trust and AVI Japan Opportunity Trust, along with several funds and segregated accounts.
Bauernfreund said: “This is an exciting next chapter for AVI. Pacific’s support will enable us to focus even more intently on what we do best, which is delivering differentiated investment outcomes for our clients, allowing us to grow the business while preserving our unique investment approach and the close relationships we have built with clients over many years.”
The transaction is not expected to change the management of AVI’s investment trusts or funds.
AVI acts as investment manager to three trusts listed in London: AVI Global Trust, AVI Japan Opportunity Trust and MIGO Opportunities Trust.
It also runs four open-ended funds: AVI Global Special Situations Fund, AVI Japanese Special Situations Fund, AVI Worldwide Opportunities Fund and AVI Japan Discovery Fund.
After completion, AVI will keep its brand and continue operating as an independent boutique.
It will remain manager of the three investment trusts and continue overseeing its open-ended funds with the same investment philosophy and process.
The transaction is subject to conditions, including regulatory approval, and is expected to complete in the second half of 2026.
Pacific Asset Management CEO Matthew Lamb said: “Combining AVI’s investment capability with Pacific’s operating platform means Joe and his team can focus on generating alpha for clients, without the distractions that come from non-investment functions and managing a growing business. We believe this model of supported independence is the optimal environment for exceptional investment talent.
“Pacific, backed by the broader Pinnacle Investment Management Group, is well positioned to take advantage of global opportunities for investment in outstanding talent across technology, distribution, and differentiated investment capabilities such as AVI.”
