Pengana closes successful IPO for Global Private Credit Trust
Pengana Capital Group has closed the IPO for its Global Private Credit Trust at $160 million.
The firm had set a minimum application of $100 million, which was reached in mid-May, and was looking to limit it at $250 million.
Settlement is expected to occur on 14 June, with trading of the units on the ASX expected from 21 June. The first monthly distribution is expected to be paid in August 2024.
The fund will be invested in over 2,000 individual loans across 19 underlying managers curated by Mercer, providing access to a highly diversified portfolio across the US and Europe. It also utilises a quarterly off-market buyback offering which will allow investors to make redemptions at net asset value on a quarterly basis.
Pengana chief executive, Russel Pillemer, appeared on the Relative Return podcast in May to discuss the offering and why the firm decided to cap assets, having launched a wholesale version of the fund last year.
The CEO said: “We’re not raising more than $250 million; we think that’s a good enough size to kick off the vehicle. We know on day one that we can allocate that full amount to our managers without holding any excess cash.
“We’re seeking to generate a nice high return of 7 per cent per annum cash yield and will pay that on a monthly basis. Hopefully, there will be some growth on top if we get the sorts of returns we think we are able to deliver.
“In these markets when inflation is quite rampant and investors are trying to keep up, having a cash yield is certainly beneficial. You have a high-returning asset class which is lowly correlated with other assets, so it makes sense within portfolio construction.”
Click here to listen to the full episode of Relative Return with Russel Pillemer.
AUTHOR
Laura Dew
Recommended for you
Bell Financial Group has appointed a chief investment officer who joins the firm from Clime Investment Management.
Private markets funds with “unattractive practices” could find themselves facing enforcement activity with ASIC chair Joe Longo stating he cannot rule it out in the future.
Despite ASIC concerns about private credit funds being accessed via the advised channel, there are questions regarding how high its usage actually is among financial advisers.
Challenger has looked to the superannuation industry for its appointment of a group chief investment officer, a newly-created role.
