Pengana Capital Group has exceeded the minimum subscription on its Pengana Global Private Credit Trust IPO.
The firm had set a minimum application of $100 million and will be looking to limit it at $250 million with the IPO set to close on Thursday, 6 June, unless fully allocated before that.
“Early interest in the offer is strong and demand from advisers and investors alike has been significant,” Pengana said in an ASX announcement.
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.
Russel Pillemer, chief executive of Pengana, said: “The Pengana Global Private Credit Trust is a game changer for retail investors who will now be able to obtain exposure to a highly diversified portfolio of global private credit investments through an ASX listed vehicle.
“The innovative quarterly buyback mechanism is also a testament to our group’s commitment to developing and delivering best-of-breed solutions that are focused on meeting the needs of our Australian investors.”
Pillemer appeared on the Relative Return podcast earlier this month 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.
