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PE1, Pengana Private Equity Trust
nipper
post Posted: Dec 3 2019, 11:37 AM
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Secondary offer likely in late Feb, new shares at approx NAV at the time, with a 'loyalty bonus' for shareholders, dependant on amount raised.

They seem to be pulling out all stops to make sure trading doesn't see a dump after issuing new shares.
QUOTE
Pengana is firmly focussed on aiming to have a continuing positive experience for our Unitholders. It is therefore our intention that all Units available under both the Placement as well as the Shortfall Offer will be allocated only to investors who are more likely to invest in PE1 over the long term, comprising mostly of clients of high-quality financial advisors as well as to existing investors and shareholders across the Pengana business.

We have no intention to offer the new Units to the general market i.e. there will be no general public offer.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Oct 23 2019, 09:31 AM
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In Reply To: mullokintyre's post @ Oct 23 2019, 09:07 AM

b



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
mullokintyre
post Posted: Oct 23 2019, 09:07 AM
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In Reply To: nipper's post @ Oct 23 2019, 08:54 AM

geez nipp, I had written and spell checked a similar article after reading the announcement, luckily I went out and hung the washing before I posted a double up.
Can't wait to see the loyalty program, will they give me for QANTAS FF points, or just a free set of steak knives??
Mick




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sent from my Olivetti Typewriter.
 
nipper
post Posted: Oct 23 2019, 08:54 AM
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Pengana Private Equity Trust (ASX: PE1) intention to offer additional units
QUOTE
• PE1 to offer additional units via an entitlement offer to existing unitholders as well as a placement
• Since listing on 24 April 2019, PE1 has generated significant upside for Unitholders
• Offer should provide additional liquidity and attract new investors and advisor groups
• Existing unitholders to receive Loyalty Units, funded by PCG – a unique innovation to provide a benefit to existing investors




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jun 14 2019, 10:47 AM
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first monthly statement out:
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On 23 April 2019, over 164 million fully paid ordinary units of PE1 were allotted to investors at an issue price of $1.25 per unit. PE1 was then granted convertible preference shares in Pengana Capital Group Limited (Alignment Shares), which provided an immediate uplift in NAV per unit of 5% on the allotment date.
Over the remainder of April, subscription proceeds were converted into USD, and a substantial majority of the capital was deployed into two short duration credit funds with underlying assets that have high credit quality characteristics. These funds are held to seek an improved return on cash held by PE1 prior to being used to satisfy capital calls from PE1’s underlying private equity investments.

In May, PE1 gained immediate private equity exposure to seven co-investment opportunities, having made a US$37 million commitment to the GCM Co-Investment Opportunities Fund II, approximately 18% of which was called in the same month. We also submitted subscription documents to gain exposure to the GCM Grosvenor Multi-Asset Class Fund II, PE1’s first opportunistic investment

QUOTE
Although the fund is only just over a month old, we have already made significant progress in accessing several co-investments, as well as identifying primary, secondary, and opportunistic investments that we intend to take advantage of over the coming months.
PRIMARY FUND INVESTMENTS
We expect to make our first private equity primary fund commitment before the end of the financial year.

SECONDARY FUND INVESTMENTS
We are currently conducting due diligence on a number of private equity secondary investment opportunities.

CO-INVESTMENTS
In May, PE1 made its first private equity co-investment allocation, committing US$37 million to the GCM CoInvestment Opportunities Fund II, which invests in middle market buyout and structured equity coinvestments, generally targeting companies with up to US$1.5 billion in total enterprise value. GCF II provides immediate private equity exposure to PE1, as the fund has already committed to seven portfolio companies alongside six different sponsors and across a number of different industries, including healthcare, IT, consumer staples, industrials and materials.

- claim a $1.32 NAV, now trading around $1.28 (but I wonder where any 4% yield will come from)




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Apr 30 2019, 06:51 PM
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In Reply To: nipper's post @ Apr 30 2019, 02:46 PM

With PE1 aiming to have a 4% yield, I'd have thought the LIT structure would be seen as attractive for SMSFs. Indeed, of the top 20, nearly half appear to be held by family trustees, rather than the 'big end'
QUOTE
Instead of paying out dividends from after-tax profits in the same way as a company does, ... trusts typically distribute most of their gross earnings directly to unitholders. The tax liability is then passed through to the unitholder level, which is a key advantage for those in a zero tax paying environment such as many self-funded retirees.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 

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nipper
post Posted: Apr 30 2019, 02:46 PM
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PE1 is out of the gates - but not racing; perhaps grazing, sniffing the wind?

Only 162 million shares issued => so the MC is around $200 mill. Probably Pengana not that happy as it makes it hard to run an efficient LIT with high fixed costs. As the IPO was without Bonus Options, they'll probably have Capital Raisings by way of DRP and Rights Issue/ SPP down the track (but not for a good 18 months, I was told)

Opened at $1.25 issue price but drifting down a cent or so, on day 1.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Apr 20 2019, 08:54 AM
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In Reply To: nipper's post @ Apr 20 2019, 08:36 AM

QUOTE
Pengana Capital Group in April closed a $100 million to $600 million initial public offering (IPO) for a listed investment trust (LIT) that invests in global and Australian private equity funds.

The Pengana Private Equity Trust will be the first of its kind on the ASX and among the few vehicles that take a fund-of-funds approach to private equity and is open to small investors....

https://www.afr.com/personal-finance/budget...20190412-p51dgy

- starts trading at end of the month. The amount raised not yet announced; it got the $100mill but might have struggled to make the top limit.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Apr 20 2019, 08:36 AM
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QUOTE
Pengana CEO Russel Pillemer believes the Pengana Private Equity Trust will fill a gap for retail, high-net-worth and SMSF investors. Managed by Grosvenor Capital Management, a US private capital investor, the trust provides exposure to global private equity and has a small allocation to credit funds.

“We designed the trust for financial advisers and direct clients who want to build a private capital allocation in their model portfolios,” says Pillemer. “Until now, it hasn’t been possible for direct investors to get exposure to global private equity funds. The best funds are mostly only available to institutions and are mostly closed to new investors.

"Those that accept new money often require a starting investment of $10 million and for it be held for at least 10 years. Or there are other complications such as a small part of committed funds being drawn down and the rest required to be provided as new investments are made.”

The Pengana trust will provide exposure to more than 600 unlisted companies as it grows. The focus is mostly mid-market, unlisted US companies with a valuation of $1 billion to $2 billion and the trust will invest through a fund-of-funds and co-investment approach.

“Our research suggests there is a sweet spot in mid-market private equity funds,” says Pillemer. “A lot of US companies of this size find it’s not worth listing on US exchanges and prefer to remain private.”

He says retail investors may have misconceptions about private equity. “There’s a perception that investing in unlisted companies means taking big bets on tiny companies. They may not realise you can invest in hundreds of private companies with billion-dollar valuations, worldwide, through a fund approach.”

Liquidity concerns

Pillemer says the LIT structure solves a problem with private equity investing: liquidity. Investors buy and sell units in the trust via the ASX, similar to a real estate investment trust. The trust does not need to fund redemptions by holding cash or selling assets.

Pillemer says the use of the Pengana trust in model portfolios constructed by financial advisers will aid its liquidity. “As funds flow into model portfolios, more of that will be allocated to private capital over time, which should provide a natural source of liquidity for the trust.”

However, investors have been sceptical of private equity listed investments companies (LICs) and trusts. They fear the illiquidity of the underlying asset class will cause the LIC or LIT to trade at a large discount to its net asset value. Also, LICs and LITs have a lower profile on the ASX and some struggle to attract buying and selling, creating layers of illiquidity.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 



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