Australia’s first global private equity listed investment trust is set to be launched by Pengana to give investors exposure to the portfolio.
The Pengana Private Equity Trust will provide investors with exposure to a globally diversified portfolio of private equity through an ASX-listed vehicle.
Grosvenor Capital Management (GCM) has partnered with Pengana to construct the trust and will help the group to select investments for it.
Grosvenor is a global alternative asset manager with US$52 billion under management and with a long track record of investing in private equity.
Private equity in the past has been the domain of institutional investors but, by trading on the ASX, the trust hopes to allow more investors access because of the potential of secondary market liquidity.
Pengana’s chief executive officer Russel Pillemer said this trust would give retail investors opportunities they had never had before.
“The Pengana Private Equity Trust is a game changer for retail investors, who will now be able to obtain exposure to global private equity investments,” he said.
Mr Pillemer also said that the trust would be highly beneficial to shareholders and its structure should ensure a successful offering.
“To show our appreciation to investors who subscribe for units in the trust under the offer, and to increase their alignment with PCG, we propose to issue the Alignment Shares into the Trust for nominal consideration.
“This will provide investors who participate in the offer with potential upside and should assist in enabling a large and successful offering,” he said.
Mr Pillemer said it was an Australian-first and, together with Grosvenor, they were able to offer access to this asset class.
“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,” said Mr Pillemer.
Grosvenor’s president Jon Levin said that private equity offered compelling investment opportunities and he was excited to bring it to the market with Pengana.
“Private equity investments benefit from the lack of short-term public pressure, are less dependent on the market cycle and have historically often generated superior returns to their listed equivalents.
“We are excited to partner with Pengana to bring this opportunity to Australian investors in the form of an ASX listed product,” he said.
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