2 very compelling ASX shares for 2022

Pinnacle is a very compelling ASX share for next year.

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There are a certain number of ASX shares that are compelling options for 2022.

Some businesses are expecting a lot of growth in the coming years and they have growth strategies to do what they can to fulfil that potential.

Management are focused on initiatives that can drive the businesses higher. Here are two leading opportunities:

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a leading ASX tech share. It is a electronic payment business that facilitates billions of (US) dollars of donations to large and medium US churches.

The business continues to see improvement in various metrics. In the first half of FY22, total processing volume increased 9% to US$3.5 billion, revenue grew 9% to US$93.5 million, the gross profit margin increased from 68% to 69% and the net profit after tax (NPAT) surged 43% to US$19.1 million.

Pushpay is working on developing the functionality of its suite of solutions to serve the Catholic segment of the market. It's expecting the benefits from the Catholic segment to be realised over the course of the following years. It's targeting acquiring more than 25% of Catholic church management system and donor management system market over the next five years.

The company continues to look for acquisition opportunities that can improve the business. It has previously bought Church Community Builder and Resi Media, which has improved its church management tools and livestreaming capabilities.

Over the last two months, the Pushpay share price has fallen more than 25%. According to Commsec, it's now valued at 24x FY23's estimated earnings.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is an ASX share that makes investments in high-quality investment management businesses and helps them grow.

For the fund managers, Pinnacle can provide a number of benefits including seeding funds under management (FUM) and working capital, distribution and client services, middle office and fund administration, technology and other infrastructure. Compliance, finance and legal services are also provided.

All of that is offered so that the investment professionals can focus on the investing, not any of the other back-office tasks.

It's investing in a number of fund managers like Hyperion, Plato, Solaris, Spheria, and Firetrail.

The company continues to expand its portfolio as well as seeing organic growth. It recently invested in the private equity investment manager Five V which provides attractive economics.

As at 31 October 2021, its aggregate affiliate FUM had grown another 1.7% to $89.4 billion, or 6.3% over the four months to 31 October 2021 excluding the $3.9 billion outflow of the Omega passive mandate which only made "very modest" fees. Aggregate retail FUM increased by 13.3% to $23 billion.

In FY22, it's expecting growth. The FUM at the last update was more than 30% ahead of FY21's average FUM.

Pinnacle has said it's committed to taking advantage of the "significant" offshore opportunity by evolving into a global multi-affiliate platform.

It has partnered with Greg Dean, the former principal manager at Cambridge Global Asset Management, to launch its first North American affiliate, based in Toronto, Canada.

According to Commsec, the Pinnacle share price is valued at 29x FY23's estimated earnings.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended PINNACLE FPO and PUSHPAY FPO NZX. The Motley Fool Australia owns and has recommended PINNACLE FPO and PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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