Pengana Capital Group has detailed the impact of its move into private credit, with chief executive Russel Pillemer describing plans to “become a force in the non-institutional market”.
Last year, the firm stated it was strategically repositioning the business to focus on private markets with the target of making the asset class accessible to non-institutional investors.
In its results for FY25, it said its global private credit offering is now fully operational with a listed vehicle, a wholesale fund, and direct-to-consumer products. This includes the Pengana Global Private Credit Trust, unlisted Pengana Diversified Private Credit Fund, online fixed-term investment market product TermPlus, and a private credit separately managed account (SMA).
Since 2019, private market FUM has grown from $200 million to $1 billion, and it appointed Nehemiah Richardson as chief executive of Pengana Credit in June 2023.
It noted private markets AUM has helped revenue grow 13 per cent, with net revenue up from $28.2 million to $31.9 million, a rate which exceeds its FUM growth.
Overall FUM stood at $3.6 billion, increasing 9 per cent on the previous year, driven by net inflows of $35 million and performance gains of $400 million, but offset by distributions of $142 million.
Pillemer said: “In recent years, the company has allocated significant resources towards developing a multifaceted private credit business. This year, the results of that investment have become evident. Our global private credit (GPC) offerings, spanning a listed vehicle, a wholesale fund, and direct-to-consumer products, are now fully operational and positioned to become a force in the non-institutional market.
“The strategic shift towards private market assets has been instrumental in enhancing all three metrics with growth in FUM, higher margins, and joint venture structures that enable Pengana to retain a larger share of gross revenue. As a result, net revenue is growing at a rate that materially exceeds both FUM growth and gross revenue growth. This dynamic is expected to continue as we deepen our presence in private markets and refine our product mix.”
Looking ahead, global private credit is “poised for continuing rapid growth” with multiple products across investor market segments and well-structured product design which is attracting new investors, it said.
Net performance fees increased from $1.7 million to $7.9 million, generated from its listed equity strategies.
