CEO Russel Pillemer introduces the Pengana Private Equity Trust, which for the first time allows Australian retail investors to access a portfolio of global private companies with a single ASX investment. He discusses the benefits of investing in private equity and explains how private equity is suited to a listed investment trust structure.
What is private equity?
Private equity is an investment into private companies, that’s unlisted companies, and you do that in conjunction with or through a private equity Fund Manager. And [through] private equity Fund Managers who have a lot of experience and expertise in investing in private companies.
Public markets are much smaller than private markets, so if you looked at all companies in excess of $10 million of revenues in Europe and in the U.S. only 2% of those companies are actually listed.
What is the Pengana Private Equity Trust?
The Pengana Private Equity Trust is a listed vehicle, and that has a substantial advantage over an unlisted vehicle. Private equity by its nature is a very long-term investment and it’s very illiquid. If investors were to invest in private equity through a direct investment, what you would find is that they would need to be in those investments for 10 – 15 years. However, if you invest through a listed trust you can actually enter and exit, or have liquidity for your underlying investment, by selling the units in the trust on market. This is such a unique opportunity because for the very first time, through the Pengana Private Equity listed investment trust, Australian retail investors will have the opportunity to invest in global private equity through one single source. And through that source they’ll actually be able to get exposure to in excess of 500 underlying companies.
The Pengana Private Equity Trust initial public offering is now open for investment.
 This is an estimate of the number of companies that the Trust may provide exposure to and is based on $600 million being raised in the Trust. If less than $600 million is raised then the Trust may provide exposure to less companies.
Pengana Investment Management Limited (ABN 69 063 081 612, Australian Financial Services Licence No. 219462) (“Pengana”) will be the issuer of units in the Pengana Private Equity Trust (ARSN 630 923 643) (the “Trust”). A Product Disclosure Statement for the Trust (“PDS”) will be made available on 4 March 2019. The PDS will be obtainable by contacting Pengana on (02) 8524 9900 or from Pengana’s website at pengana.com/PE1. A person who is considering investing in the Trust should obtain the relevant PDS and should consider the PDS carefully and consult with their financial adviser to determine whether the Trust is appropriate for them before deciding whether to invest in, or to continue to hold, units in the Trust.