The responsible manager (RM) of Pengana Private Equity Trust (PE1), Pengana Investment Management (PIML), has announced it will offer additional PE1 units in 2020.
The secondary offer would offer a loyalty benefit program to investors who hold PE1 units as at the closing date of the secondary offer.
According to RM, existing PE1 investors would benefit from the secondary offer of additional units in three ways:
- An entitlement offer that will enable to increase their investment, without having to buy on-market
- Increased size of the vehicle and thereby increased liquidity for their holdings
- A loyalty benefit program, entirely paid for by PCG
PIML said its decision was underpinned by PE1’s strong performance to date and the continued and growing demand for private equity investments.
Russel Pillemer, PCG’s chief executive, said: “We have had many approaches from existing and new investors and advisor groups who are seeking to acquire meaningful exposures to PE1 but are unable to do so because of a lack of liquidity.
“The offer of additional units should provide additional liquidity as well as enable the trust to attract new investors and advisor groups.”
PCG also said that the proposed loyalty benefit program was a unique innovation, reflecting the high value it placed on the loyalty of our supporters.
“To our knowledge, this is the first-time ever that existing investors in a vehicle will benefit in this manner from an additional capital raising,” the company said.
Under the proposed loyalty benefit program, if an eligible investor retains their pre-secondary offer unitholding for four months after the closing date of the secondary offer, then the eligible investor would receive additional PE1 units that are fully paid up by PCG (loyalty units).
Following this, it was also proposed that the number of loyalty units to be issued pro rata to all eligible investors will be 1% of the aggregate unitholding of eligible investors per complete $100m raised under the secondary offer.
For example, if $100m is raised under the secondary offer, then the percentage will be 1%; if $250m is raised under the secondary offer, then the percentage will be 2.5%, and so on.
