Pengana’s private credit trust IPO exceeds minimum subscription
The Pengana Global Private Credit Trust IPO has exceeded its minimum subscription value of AUS$100m (£52.16m) two weeks before its launch, the firm has announced.
Pengana Group will now be looking to limit the fundraise to AUS$250m ahead of the IPO close data of 6 June 2024, unless it has been fully allocated before then.
“Early interest in the offer is strong and demand from advisers and investors alike has been significant,” Pengana said in a market announcement.
The Australian fund manager has described the fund as a “game changer” which will allow retail investors to access the lucrative private credit market through a single fund.
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The fund will be invested in more than 2,000 individual loans across 19 underlying managers curated by Mercer. It will also utilise a quarterly off-market buyback offering which will allow investors to make redemptions at net asset value on a quarterly basis.
“The Pengana Global Private Credit Trust is a game changer for retail investors who will now be able to obtain exposure to a highly diversified portfolio of global private credit investments through an ASX listed vehicle,” said Russel Pillemer, chief executive of Pengana.
“The innovative quarterly buyback mechanism is also a 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.”
Read more: Australia’s Pengana launches listed private credit fund
Pillemer added that Pengana does not intend to raise more than AUS$250m, as “we think that’s a good enough size to kick off the vehicle.
“We know on day one that we can allocate that full amount to our managers without holding any excess cash,” he said.
“We’re seeking to generate a nice high return of seven per cent per annum cash yield and will pay that on a monthly basis. Hopefully there will be some growth on top if we get the sorts of returns we think we are able to deliver.”
Read more: Australian pension fund increases private credit exposure
