Pengana Private Equity Trust

The Pengana Private Equity Trust provides access to a diversified portfolio of global private market investments via a listed investment trust structure.

The Pengana Private Equity Trust (ASX: PE1) gives investors the opportunity to access a diversified portfolio of global private market investments, with a select allocation to private credit and opportunistic investments. The Trust has traded on the ASX since April 2019.

The Trust seeks to generate, over an investment horizon of at least 10 years, attractive returns and capital growth through a selective and diversified approach to private market investments.

The Trust is managed by Grosvenor Capital Management L.P, one of the largest and longest continually operating allocators to alternative investments in the world. GCM and its affiliates ('GCM Group') have more than US$24 billion of AUM across its private market platform. The GCM Group has in excess of 500 investment manager relationships in private markets with commitments in over 800 underlying funds and over 200 co-investment opportunities since 1999.

INVESTMENT STRATEGY

The Trust will seek to generate, over an investment horizon of at least 10 years, attractive returns and capital growth through a selective and diversified approach to private markets investments, including private equity, private credit, and other opportunistic investments.

GCM manages the customised investment strategy for the Trust that seeks to provide diversification across underlying investment managers, vintages, geographies, sectors and strategies. They invest with underlying managers who have historically generated upper quartile returns, and who GCM believes have the potential to continue to do so.

BENEFITS OF INVESTING

Performance. Private equity has outperformed public market equivalents[i] across multiple time horizons, geographic regions and market conditions.[ii]

Diversification. Private equity investments have historically tended to exhibit somewhat lower correlation with traditional stock and bond markets.[ii]

Market cycle resilience. Historical performance of private equity has been resilient across various market environments.[ii]

Income. Pengana intends to target a cash distribution yield equal to 4%p.a.[i]

Simple to invest. A single point of entry to a well-diversified portfolio of private equity investments in accordance with the long-term target guidelines for the portfolio.

Access. The Trust will seek to provide investors with exposure to oversubscribed or difficult-to-access middle market managers globally.

Liquidity. The structure of the listed Trust allows small and large investors to gain exposure to private equity with with the flexibility to buy and sell units on the ASX so long as an active market exists.[iv]

Investment management. The Trust's listed structure allows Pengana to deliver an investment management capability typically accessed by institutional clients.

Experienced Investment Manager. The Trust's investments are sourced and due diligence conducted by Grosvenor Capital Management, L.P. ("GCM"). GCM possesses a track record in private markets investing dating back to 1999. GCM and its affiliates have over US$24 billion in private equity, real estate and infrastructure assets under management.

Alignment shares. A 5% uplift in net asset value on the allotment date is expected to be created by the issue of PCG shares equal to 5% of the total amount raised under the Offer into the Trust for nominal consideration.

You can view a summary of the risks associated with the trust here.

HOW TO INVEST

Pengana Private Equity Trust shares are traded on the Australian Securities Exchange (ASX) under the ticker code PE1. You can purchase shares through a stockbroker in the same way as you buy shares in other companies.

If you do not have a stock broker, the ASX provides a service which can assist you in choosing a stock broker.

  • Performance History

    PERFORMANCE AT JULY 2019

     

    1 MTH¹

    2 MTH¹‚²

    SINCE INCEPTION

    Private Equity Trust 1.7%  0.8765%  6.8%
           


    1 Performance is calculated on a NAV per unit basis. Past performance is not a reliable indicator of future performance, the value of investments can go up and down.
    2 The NAV per unit at inception is based on the subscription price per unit which is equal to $1.25.

  • Investment Team
    LevinJon180x170
    Jonathan R. Levin

    President Chair of the Global Investment Council

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    JasonMetakis180x170
    Jason L. Metakis

    Managing Director GCM Private Markets Investment Committee Member

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    FredPollock180x170
    Frederick E. Pollock

    Managing Director Pengana Private Equity Trust Portfolio Manager

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    BrianSullivan180x170
    Brian W. Sullivan

    Managing Director Head of Private Equity Secondaries

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    BradMeyers180x170
    Bradley H. Meyers

    Managing Director Head of Portfolio Management

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  • Investor Notifications

    There are currently no investor updates for you to note.

  • Reports and Resources
    Important Information

    Pengana Private Equity Trust

     

  • Ratings and Awards
    Ratings
    Lonsec Recommended* Click to View
    Independent Research Report Recommended+** Click to View

    This report may only be accessed by holders of Australian Financial Services Licences and their authorised representatives.

    *The Lonsec Rating (assigned March 2019) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to "General Advice" (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Pengana Capital product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria.

    ** Please refer to the full report available at pengana.com/PE1 under 'Resources'.

    [i] Pengana intends that the first four cash distributions following the Trust’s listing will be $0.025 per unit per 6 month period with the first distribution payable for the period ending 31 December 2019. From 1 July 2021, Pengana intends to target a cash distribution yield equal to 4% p.a. (prorated on a non-compounded basis). The targeted distribution will be calculated on the net asset value of the Trust excluding the value of the Alignment Shares. The targeted distribution is only a target and may not be achieved. Investors should review the risk summary set out in section 11 of the PDS. 

    [ii] The Public Market Equivalent (“PME”) concept allows investors to compare the performance of private equity and other private markets investments (Private Equity) to other types of investments, such as public market indices (Public Equity). The methodology assumes buying and selling a given index according to the timing and size of the cash flows between the investor and the private investment. Performing this comparison requires the construction of a hypothetical investment fund that mimics private equity cash flows. This hypothetical fund purchases and sells shares of the index at the same time the private equity vehicle calls and distributes cash. The net asset value of the hypothetical fund, called the public net asset value, depends on the number of shares and the share price (i.e., the index value) as of the report date. 

    [iii] Source: GCM utilising certain information obtained from The Burgiss Group (“Burgiss”). Burgiss is an independent subscription-based data provider. This information is based on published 3Q 2018 industry data as of January 2019. Burgiss sources their data from MSCI, S&P and Bloomberg Barclays and other data providers, as well as private equity funds worldwide. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data utilised. The MSCI data may not be further redistributed or used to create indices or financial products. S&P and their third party information providers do not accept liability for the information and the context from which it is drawn. This information is not approved or produced by MSCI. Burgiss, MSCI, S&P and Bloomberg Barclays have not provided consent to the inclusion of statements utilising their data. No assurance can be given that any investment will achieve its objective or avoid losses. Past performance is not necessarily a guide to future performance. The value of investments can go up or down. 

    [iv] Investors should take into account liquidity risk, where the demand for a financial instrument (such as units in the Trust) at a certain price is low, which may prevent an investor from selling the financial instrument at a certain price.