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.
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.