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Pengana Global Private Credit Trust IPO reaches $100m on first day

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By Rhea Nath
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3 minute read

The investment vehicle, limited to $250 million, has seen strong interest as investors and advisers seek exposures to global private credit.

The Pengana Global Private Credit Trust (PCX) has crossed its minimum offer threshold of $100 million since opening its initial public offer (IPO) this week on Monday, 20 May.

According to Nehemiah Richardson, chief executive of Pengana Credit, the demand reflects strong adviser and investor interest in global private credit given its portfolio diversification benefits.

“There is clearly demand for the attractive yields, stable income, low volatility and capital preservation characteristics,” Richardson said.

Moreover, with retail investors historically facing challenges in accessing the asset class, the investment vehicle can provide a “single access point to an already established, highly diversified portfolio of global private credit investments.”

Mercer was named investment adviser on the portfolio construction of this offering last year and will curate and assess the more than 2,000 individual loans across 19 underlying managers in Europe and the US that PCX will be invested in.

PCX will be targeting the attractive returns synonymous with the global private credit sector, which will also include a 7 per cent annual cash distribution target yield. This will be paid monthly to investors from the first month after listing.

The IPO is limited to $250 million and is expected to close on 6 June 2024, unless fully allocated prior.

Pengana Capital Group’s chief executive officer, Russel Pillemer, also highlighted the “innovative” quarterly buyback mechanism with the investment trust, with PCX investors getting a quarterly opportunity to make redemptions at NAV.

The fund explained investors will have an alternate option for selling their PCX units and the mechanism is intended to give investors a better investment outcome over traditional listed investment companies and listed investment trust structures by reducing the propensity for trading on-market to occur at large discounts to the NAV per Unit.

“The innovative quarterly buyback mechanism is 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 stated.

A priority offer has been extended to investors in all of Pengana Capital Group’s funds as well as shareholders in its listed vehicles. These include Pengana International Equities Limited, Pengana Capital Group, and Pengana Private Equity Trust.