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.

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“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.