Pengana Global Private Credit Trust demand surpasses minimum subscription on first day of IPO
Unparalleled global private credit investment vehicle, the Pengana Global Private Credit Trust (ASX: PCX), has exceeded its minimum offer threshold of $100 million early in its initial public offer phase, via applications and commitments.
The PCX IPO opened on 20 May 2024, and is limited to $250 million. The offer is expected to close on 6 June 2024, unless fully allocated prior.
According to Pengana Credit CEO, Nehemiah Richardson. “The demand reflects strong advisor 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.¹
“Until now retail investors have faced a number of issues accessing this asset class which PCX is designed to address, including providing a single access point to an already established, highly diversified portfolio of global private credit investments.”
PCX will be invested in over 2,000 individual loans across 19 underlying managers who are curated and assessed by Mercer, providing access to a highly diversified portfolio across the US and Europe. Mercer, one of the world’s largest investment consultants to institutional investors, constructs the portfolio in its role as investment consultant to the Trust.
PCX is targeting the attractive returns synonymous with the global private credit sector, which will also include a 7% annual cash distribution target yield³, paid monthly to investors, from the first month after listing³.
Aside from Pengana’s objective to deliver unparalleled access to global private credit, an element of capital accumulation, and a monthly income, Pengana is introducing a new approach to listed investment trusts via a quarterly off-market buyback offer. PCX investors will have a quarterly opportunity to make redemptions at NAV2.
This will give investors an alternate option for selling their PCX units², and is intended to give investors a better investment outcome over traditional listed investment company (“LIC”) and listed investment trust (“LIT”) structures by reducing the propensity for trading on-market to occur at large discounts to the NAV per Unit.
Russel Pillemer, Chief Executive Officer of PCG said: “The innovative quarterly buyback mechanism is testament to our group’s commitment to developing, and delivering, best-of-breed solutions that are focussed on meeting the needs of our Australian investors.”
A Priority Offer has been extended to investors in all of PCG’s funds as well as shareholders in PCG’s listed vehicles: Pengana International Equities Limited (ASX: PIA), Pengana Capital Group (ASX: PCG) and Pengana Private Equity Trust (ASX: PE1).
More information
More information can be found at Pengana.com/PCX
Interested investors can apply for units in PCX at: https://pcx.pengana.com/#register
Syndicate
Taylor Collison are Lead Arranger and Joint Lead Manager to the offer. Morgans, Shaw and Partners, and Cannacord Genuity are Joint Lead Managers.
Offer size
The minimum subscription amount is $100 million, with a $250 million maximum.
Important dates:
The offer to participate in the IPO for PCX closes on 6 June (unless all units are allocated earlier). Trading of Units on the ASX is expected to commence (on a normal settlement basis) on 20 June 2024.
About Pengana Capital Group
Founded in 2003, and headquartered in Sydney, with offices in Melbourne, Brisbane, and Adelaide, Pengana Capital Group (ASX: PCG) is a diversified funds management group offering a range of distinct and differentiated listed and unlisted, international and Australian, investment strategies. The group is well recognised as a provider of uniquely structured products that enable many Australian investors access to investment opportunities that would otherwise be out of reach. The group’s premium investment products employ active strategies with non-benchmark mandates, giving each of the group’s investment teams the freedom to invest in their best ideas. Visit www.pengana.com
Important Information
- Past performance is not a reliable indicator of past performance. The value of investments can go up and down. Investments in alternatives involve substantial risk, including strategy risks, manager risks, market risks, and structural/operational risks, and may result in the possible loss of your entire investment. In respect of return, volatility and correlations: returns in USD over a 10 year period from 1 July 2013 to 30 June 2023. Sources: S&P (S&P 500 Total Return Index), Bloomberg (Bloomberg US Corporate Total Return Value Unhedged USD), Burgiss (Burgiss – Private Debt (North America)), and Thomson Reuters Datastream (ICE BofAML US High Yield Master II, S&P Leveraged Loan). S&P, Bloomberg, Burgiss and Thomson Reuters have not provided consent to the inclusion of statements utilising their data. No assurance can be given that any investment will achieve its objectives or avoid losses. Past performance is not necessarily a guide to future performance.
- The Responsible Entity intends to make an offer to buy-back 5% of the issued capital of PCX at the Buy-Back Price each calendar quarter on an off-market basis, subject to the Responsible Entity determining such is in the best interest of unitholders. The Buy-Back Price is equal to the sum of (i) the NAV per unit as at the Buy-Back Pricing Date; and (ii) the amounts of distributions that the unitholder would have been entitled to if the unit was not cancelled from the Buy-Back Cancellation of Units Date up to the Buy-Back Payment Date. This off-market buy-back mechanism is intended to provide investors with an alternate option to sell their holdings. It is also intended to give investors a better investment outcome over traditional listed investment company (“LIC”) and listed investment trust (“LIT”) structures by reducing the propensity for trading on-market to occur at large discounts to the NAV per unit. The first round of quarterly buy-back post the completion of the IPO will have a Buy-Back Pricing Date of on or around 31 December 2024. Subject to the acceptance of a buy-back timetable which is acceptable to the ASX, a Buy-Back Booklet with details of specific dates for this first buy-back will be made available to unitholders on or around 15 August 2024, with the date required for a unitholder to elect to participate in the buy-back being on or around 20 September 2024. The Responsible Entity intends that each subsequent round of quarterly buy-back after the first round will also have at least one calendar quarter between the date required for a unitholder to elect to participate in the buy-back and its Buy-Back Pricing Date and Buy-Back Payment Date, with specific dates to be made available in future Buy-Back Booklets (subject to the acceptance of the buy-back timetable by the ASX). Please refer to the PDS for an explanation of capitalised defined terms and in particular to section 6.12 for further information in respect of the buy-back proposals and other capital management initiatives.
- The target cash distribution yield is an objective target only and may not be achieved. Any shortfall in net income generated may result in a distribution payment made out of capital invested. Future returns are not guaranteed and a loss of principal may occur. Investors should review the Risks summary set out in Section 8 of the PDS. The first distribution is expected to be paid with reference to the period ending on 31 July 2024, with July 2024 being the first full month following the Settlement Date. Past performance is not necessarily a guide to future performance.
