Pengana to launch private equity listed trust
Pengana Capital Group (PCG) has announced plans to launch its first global private equity listed investment trust (PE1), which will be expected to raise between $250 million and $1 billion and will target self-managed superannuation fund (SMSF) investors.
The group decided to partner with Grosvenor Capital Management (GCM), a Chicago-based alternative asset manager with US$52 billion in assets under management (AUM) in private equity, hedge funds, infrastructure and real estate.
GCM would be tasked with constructing the trust’s portfolio by selecting the most suitable investments.
With the initial public offering (IPO) scheduled for 26 February, PE1 would aim to attract Australian SMSF investors and advisers given they typically have very little exposure to this asset class.
According to Pengana, this is due to a lack of suitable investment options, including the absence of suitable vehicles with daily liquidity and a lack of access to private equity managers.
“The Pengana Private equity trust is a game changer for retail investors, who will be able to obtain exposure to global private equity investments,” PCG’s chief executive, Russel Pillemer, said.
“Through our partnership with GCM, Australian investors will for the very first time have easy access to this exciting asset class through a large ASX listed vehicle.”
According to Pillemer, the successful launch of the trust would be also beneficial for the PCG’s shareholders as investors in Pengana’s funds as well as shareholders in Pengana International Equities, PCG and Washington H. Soul Pattinson would be offered an access to a priority offer.
The trust would use an incentive structure for investors subscribing under the offer, with investors expected to receive a five per cent uplift in net asset value on the allotment date via the issue of shares in PCG at nominal value.
AUTHOR
Oksana Patron
Recommended for you
Insignia Financial has reported net inflows of $448 million into its asset management division in the latest quarter, as well as popularity from advisers for its MLC managed accounts.
Two Australian active fund managers have been singled out by Morningstar for their ability to achieve consistent performance and share price growth in the past 12 months.
Pinnacle Investment Management has expanded its private market coverage, forging a strategic partnership with a private markets manager via a 13 per cent stake acquisition.
Active fund managers without a strong distribution platform will be “left behind”, believes Magellan, as it pivots its business away from being a traditional asset manager.
