Pinnacle Investment Management Group Ltd (ASX: PNI) shares are racing higher on Wednesday morning.

At the time of writing, the ASX 200 share is up 8% to a record high of $27.11.

This follows the release of the investment management company's half year results.

ASX 200 share hits record high on strong results

• Revenue up 17% to $27.6 million
• Share of Pinnacle affiliates net profit up 99% to $74.3 million
• Net profit after tax up 150% to $75.7 million
• Interim dividends per share up 112% to 33 cents

What happened in the first half?

For the six months ended 31 December, the ASX 200 share reported a stunning 150% increase in net profit after tax to $75.7 million.

A key driver of this growth was the performance fees earned by nine Pinnacle affiliates. Post-tax, they contributed $36.4 million of Pinnacle's net profit after tax, which is up from $12.3 million in the prior corresponding period.

Commenting on the half, Pinnacle's chair, Alan Watson, said:

When considering the results over this half, it was pleasing that the continued alpha generation of nine Affiliates resulted in strong performance fees during the half, contributing $36.4 million to Pinnacle's net profit after tax, compared with $12.3 million from nine Affiliates in the PCP.

The ASX 200 share also revealed that for the half, net inflows were $6.7 billion. This led to aggregate retail funds under management (FUM) reaching $35.4 billion at the end of December and aggregate international FUM climbing to $44.8 billion.

This ultimately allowed the company's board to declare a partially franked interim dividend of 33 cents per share, which is up 112% on the prior corresponding period. This will be paid to eligible shareholders next month on 21 March.

Management commentary

Pinnacle's managing director, Ian Macoun, was pleased with the company's performance during the half and highlights its growing performance fees. He commented:

It has been a key strategy of Pinnacle and Affiliates to grow FUM subject to performance fees, with the number of strategies across the Pinnacle platform with the potential to deliver meaningful performance fees now 28, representing FUM of over $44 billion.

These strategies are across a range of investment styles and asset classes, with the likelihood of performance fees distinct between individual strategies, such that performance fees should be a significant and ongoing component of Pinnacle's overall earnings in any financial year, as we have been explaining to shareholders for some time.