Pengana Global Private Credit Trust reports strong initial raising on retail demand for global private credit
Demand for retail investment access to global private credit has been demonstrated by a strong IPO raising for the Pengana Global Private Credit Trust (ASX: PCX), according to Pengana Credit CEO, Nehemiah Richardson, as the Trust reported a circa $160 million raising.
The PCX offer, a listed investment trust providing unprecedented access to global private credit investments, closed on 6 June 2024, and is preparing to list on the ASX on 21 June 2024.
Global private credit investments for PCX will be selected by Pengana together with Mercer, for a highly diversified investment vehicle aiming to deliver global-private-credit-like returns, which includes a consistent income via a 7% p.a. cash distribution yield, net of any fees, paid monthly, plus some capital growth.
Pengana Credit CEO, Nehemiah Richardson, said advisors and investors are drawn to the returns profile and diversification benefits of global private credit. “We are delighted to have raised ~$160 million and are proud to bring something completely new to market, opening doors to global private credit via a listed investment trust.
“Until now this asset class has been extremely difficult for advisors and investors to access, and they have been missing out on significant diversification and returns benefits. We are pleased to be changing all that through investment vehicles such as PCX.”
PCX will provide access to a highly diversified portfolio across the US and Europe, investing in over 2,000 individual loans across 19 underlying managers who are curated and assessed by Mercer.
The trust also introduces an innovation to listed investment trusts, in the form of a a quarterly off-market buyback-at-NAV mechanism, which is designed to reduce the potential for trading at large discounts to NAV. “The quarterly off-market buyback gives investors an alternate option for selling their PCX units, against the discount-to-NAV issue which has been a problem for some listed investment trusts.
“We worked closely with the ASX on the buyback structure as it’s important there is confidence in the trading conditions of the trust.”
The PCX listed investment trust is part of a broader push by Pengana to make global private credit more available to Australian retail investors, which most recently announced the launch of TermPlus – an innovative approach to delivering best-of-breed online term accounts.
TermPlus opens the world of global private credit returns to retail investors with as little as $2,000 to invest.
“We’re driven to give investors more opportunities to benefit from global private credit, which has been one of the world’s fastest growing asset classes over the last 15 years”, Mr Richardson concluded.
View the original AdviserVoice article HERE.
