Did you know that 98% of all companies in Europe and the US with revenues in excess of $10 million are not listed? Not only that, but the number of listed companies have been steadily decreasing since the mid 1990’s. In collaboration with Chicago based Grosvenor Capital Management, the Pengana Private Equity Trust (ASX:PE1) will be a listed vehicle that seeks to provide investors with access to the growing universe of private companies all over the world.
The Trust is the first of its kind in Australia, and provides an opportunity for Australian investors to gain access to a professionally managed and globally diversified portfolio of private equity funds and direct private equity investments, with daily liquidity, through a single ASX trade.
Private equity by its nature is a very long-term investment and it’s very illiquid. Investing in private equity through a direct investment, what you would find is that investors would need to be in those investments for 10 – 15 years. However, if you invest through a listed trust you can actually enter and exit, or have liquidity for your underlying investment, by selling the units in the trust on market.
In this Fund in Focus, Damian Crowley discusses some of the private equity opportunities available to investors, as well as outlining the historical performance in this sector and diversification benefits of allocating to this space.
Pengana Investment Management Limited (ABN 69 063 081 612, Australian Financial Services Licence No. 219462) (“Pengana”) is the issuer of units in the Pengana Private Equity Trust (ARSN 630 923 643) (the “Trust”). A Product Disclosure Statement for the Trust (“PDS”) is obtainable by contacting Pengana on (02) 8524 9900 or from Pengana’s website at pengana.com/PE1. A person who is considering investing in the Trust should obtain the relevant PDS and should consider the PDS carefully and consult with their financial adviser to determine whether the Trust is appropriate for them before deciding whether to invest in, or to continue to hold, units in the Trust.