The joint venture will enable Australian investors to access global private credit investments, with WHSP providing $200 million of seed funding to establish a highly diversified portfolio of best-of-breed global private credit investments.
Australian fund manager Pengana has been building the portfolio over the past year and the seed capital is close to being fully allocated.
The firm said that in the coming months, investors, including advised and direct retail investors, high-net-worth and family offices, will be given the opportunity to invest alongside WHSP, with the launch of several vehicles tailored to different market segments.
Russel Pillemer, chief executive of Pengana Capital Group, said that while opportunities in global private credit have been growing at a rapid pace since 2008, exposure to global private credit investment options is severely lacking in Australia.
“Many every day investors aren’t even aware of the size of this opportunity, purely because they have never had this level of access before,” Mr Pillemer said.
“Investing in global private credit offers several significant benefits for portfolio construction, including diversification, higher yields, and lower volatility. By adding global private credit to portfolios, investors can achieve greater balance and potentially improve their risk-adjusted returns.
“But in Australia, there is an absence of vehicles which are appropriately structured for Australian retail and mass high-net-worth investors.
“We are delighted to have partnered with an investor the calibre of Soul Patts who have provided seed funding to enable the construction of the initial portfolio ahead of Pengana bringing this opportunity to market.”
Todd Barlow, CEO of WHSP, said: “We are excited to partner with Pengana to provide Australian investors with a differentiated opportunity to invest in top-tier global private credit.
“We are highly impressed by the portfolio’s investment strategy, the access to investments and expertise. On this basis we have made a substantial capital investment to seed the portfolio.”
Mr Pillemer added that Pengana is currently assessing an opportunity to launch a direct-to-consumer retail offering later in the year, offering a solution for Australians to earn an income on their savings.
In 2019, Pengana launched Australia’s first and only listed global private equity vehicle, Pengana Private Equity Trust (ASX: PE1), providing retail investors access to “top tier” global private equity investments.