Pengana Private Equity Trust · ASX:PE1
Pengana Private Equity Trust — Investor Presentation (March 2022)
55 slides from Pengana Private Equity Trust's investor presentation, Mar 9, 2022
Slide 1: Entitlement Offer – Investor Presentation
For personal use only PENGANA PRIVATE EQUITY TRUST (ASX: PE1) Entitlement Offer – Investor Presentation 9 March 2022
Slide 2: Agenda
For personal use only AGENDA I Entitlement Offer II About GCM Grosvenor III Private Equity Investing IV Pengana Private Equity Trust V Case Studies VI Appendix: Notes and Disclosures PENGANA PRIVATE EQUITY TRUST (ASX: PE1) | PAGE 2
Slide 3: Entitlement Offer
ENTITLEMENT OFFER For personal use only An offer to eligible unitholders to subscribe for 1 new unit for every 5 units held on the record date of 14 March 2022 Shortfall facility 16 – 31 March Issue Price: $1.54 Under a shortfall facility, The offer will only be The issue price per new eligible unit
Slide 4: Important Dates
IMPORTANT DATES For personal use only Announcement of the Offer 9 March 2022 Units trade on an 'ex' basis in respect of the Offer 11 March 2022 Record Date for eligibility in the Offer (7.00 pm Sydney time) 14 March 2022 Dispatch of Offer Details to Eligible Unitholders 16 March 2022 Offer Opening D
Slide 5: Why Now?
WHY NOW? For personal use only Additional capital required to meaningfully capitalise on new and near-term opportunities › The start of 2022 has been characterised by an inflation shock in the US, which has presented a unique opportunity to offer solutions to high quality, growth-oriented companies
Slide 6: Capital Deployment to Date
CAPITAL DEPLOYMENT TO DATE PE1 has already achieved a number of its long-term portfolio goals more than a year ahead of the four year schedule established at launch For personal use only • Fully committed to private equity investments • Now with exposure to over 350 portfolio companies after becomin
Slide 7: Deployment of Offer Proceeds
DEPLOYMENT OF OFFER PROCEEDS Cash expected to be inside long-term guideline range of 2-10% within 6 months by deploying into: For personal use only Direct tactical investments in private equity deals Modest increases to targeted 2022 commitments to Additional primary fund commitment GCM’s specialise
Slide 8: At PCG, We Have Confidence in Our Investments
AT PCG, WE HAVE CONFIDENCE IN OUR INVESTMENTS For personal use only PENGANA PRIVATE EQUITY TRUST (ASX: PE1) | PAGE 8
Slide 9: Agenda
For personal use only AGENDA I Entitlement Offer II About GCM Grosvenor III Private Equity Investing IV Pengana Private Equity Trust V Case Studies VI Appendix: Notes and Disclosures PENGANA PRIVATE EQUITY TRUST (ASX: PE1) | PAGE 9
Slide 10: Years of Alternatives Investing
50 YEARS OF ALTERNATIVES INVESTING GCM Grosvenor is one of the world’s largest and most diversified independent alternative asset management firms For personal use only 1971 74% US$72 bn 524 169 First year of of AUM in customised Assets under Employees Investment Investing separate accounts professi
Slide 11: Flexible, Open Architecture Platform
FLEXIBLE, OPEN ARCHITECTURE PLATFORM For personal use only One Platform That Spans the Alternatives Investing Universe 5,600+ tracked managers across the platform Absolute Private Real Infrastructure Return Credit Equity Estate Strategies 650+ manager relationships Multiple Implementation Options Pr
Slide 12: Global Leader in Private Equity Investing
GLOBAL LEADER IN PRIVATE EQUITY INVESTING We leverage our information and relationship advantage for superior sourcing and market intelligence. For personal use only Private Equity Platform 1999 54 US$32.3 bn 800+ 270+ First year of professionals, Private equity fund direct and private equity invest
Slide 13: ESG at GCM Grosvenor
ESG AT GCM GROSVENOR Our Environmental, Social and Governance (ESG) Policy provides a framework for the integration of ESG throughout our For personal use only investment and business activities. Investing Responsibly Industry Leadership Responsible Business Practices Approx. We strive to promote ES
Slide 14: Agenda
For personal use only AGENDA I Entitlement Offer II About GCM Grosvenor III Private Equity Investing IV Pengana Private Equity Trust V Case Studies VI Appendix: Notes and Disclosures PENGANA PRIVATE EQUITY TRUST (ASX: PE1) | PAGE 14
Slide 15: The Private Markets Opportunity
THE PRIVATE MARKETS OPPORTUNITY Private markets are significantly larger than public markets For personal use only United States Developed Europe Number of Private Companies vs. Public Companies Number of Private Companies vs. Public Companies 3,819 3,824 PUBLIC PUBLIC COMPANIES COMPANIES 94,762 226
Slide 16: Private Equity Continues to Outperform on a Relative Basis
PRIVATE EQUITY CONTINUES TO OUTPERFORM ON A RELATIVE BASIS For personal use only Private equity buyout returns have historically outperformed public market equivalents (“PMEs”)1 across geographies and over multiple time horizons. United States Europe Asia 0.00% 20.00% 0.00% 20.00% 0.00% 20.00% 22.7%
Slide 17: PE in Different Market Environments
PE IN DIFFERENT MARKET ENVIRONMENTS Private equity has historically outperformed public equities in various market environments. For personal use only Upper Quartile4 / Median Pooled Private Equity IRR1 21.0% Upper Quartile4 / Median Public Market (MSCI World) Equivalent2 Public Market (MSCI World)
Slide 18: Benefits of Adding PE to a Portfolio
BENEFITS OF ADDING PE TO A PORTFOLIO Including private equity in a traditional portfolio of equities/bonds has historically resulted in higher returns with lower volatility For personal use only 14% Private Equity 12% 10% Add 20% Private Equity Increased Return Global Equities 8% Traditional 60/40 P
Slide 19: Increasing Global PE Allocation
INCREASING GLOBAL PE ALLOCATION Since the 1990s, institutional investors have steadily increased allocations to private equity and alternatives within their portfolios For personal use only Global private equity assets under management (US$bn)1 Institutional investors’ allocation to Private Equity2
Slide 20: Australian Opportunity
AUSTRALIAN OPPORTUNITY Australian superannuation investors have minimal private equity exposure For personal use only 16.8% 5.0% Australian Superannuation Funds¹ Future Fund 1. Includes funds with more than 4 members. Sources: The Association of Superannuation Funds of Australia’s February 2022 Supe
Slide 21: The Case for Middle Market Investing
THE CASE FOR MIDDLE MARKET INVESTING GCM Grosvenor Investment Process Focusses on Smaller Funds Operating in Small and Middle Markets For personal use only Attractive features of the middle market GCM Grosvenor’s middle market focus2,3 Large addressable market GCM Grosvenor’s buyout co-investments
Slide 22: Fund Size Does Matter When It Comes to Performance
FUND SIZE DOES MATTER WHEN IT COMES TO PERFORMANCE For personal use only Manager selection, including sophisticated Investment and Operational Due Diligence, are critical. The best funds can outperform median IRRs by a wide margin U.S. buyout fund performance by fund size (Net IRR (%)) Upper Quartil
Slide 23: Agenda
For personal use only AGENDA I Entitlement Offer II About GCM Grosvenor III Private Equity Investing IV Pengana Private Equity Trust V Case Studies VI Appendix: Notes and Disclosures PENGANA PRIVATE EQUITY TRUST (ASX: PE1) | PAGE 23
Slide 24: Trust Overview
TRUST OVERVIEW PE1 seeks to provide investors with a diversified set of exposures to global private equity through a customised mandate For personal use only managed by Grosvenor Capital Management, L.P. Net Asset Value $369 million as at 28 February 2022 The Trust seeks to generate, over an investm
Slide 25: Key Features
KEY FEATURES For personal use only One ASX trade Market cycle independence A single point of entry to a globally diversified and Historical performance of private equity has been customised portfolio of private equity funds and resilient across various market environments.¹ direct private equity inv
Slide 26: Private Equity Implementation Methods
PRIVATE EQUITY IMPLEMENTATION METHODS Private Equity Provides Multiple Options for Company Life Cycle and Investment Structure Access For personal use only Private Equity Universe Buyout Special Situations Growth Equity Multiple implementation options Primary Funds Co-Investments Secondaries Primary
Slide 27: Components of the PE1 Portfolio
COMPONENTS OF THE PE1 PORTFOLIO For personal use only PE1 Illustrative Allocations by Investment Type1 Strategy Key Attributes Investments › Lower fees and efficient exposure Equity Co- & Directs Cash Co-Investments › Intermediate term liquidity & Direct Investments › J-curve mitigation › Higher net
Slide 28: Diversification of Target Portfolio
DIVERSIFICATION OF TARGET PORTFOLIO The target portfolio is anticipated to provide diversification across underlying investment managers, vintages, geographies, For personal use only sectors, and strategies. Targeting exposure to ~100 funds and 500+ companies. Vintage Year1 Time of Commitment Invest
Slide 29: Current Portfolio Allocation
CURRENT PORTFOLIO ALLOCATION For personal use only Exposure to over 350 companies. PE1 Allocations by Investment Type Investments diversified across: › All sectors Cash* › Vintages1 (2004 to present) 12% › Regions (U.S., Europe and Asia) › Implementation methods:2 14 primary funds managed by 13 cy
Slide 30: Equity Co-Investments & Directs
EQUITY CO-INVESTMENTS & DIRECTS Multi-Asset Class Fund II Multi-Asset Class Fund III For personal use only 2018 A$1.35 billion 2021 A$964.1 million Vintage LP commitments Vintage LP commitments Fully invested; now in harvest mode Early in investment period PE1 Statistics: (A$ millions) PE1 Statistic
Slide 31: Equity Co-Investments & Directs
EQUITY CO-INVESTMENTS & DIRECTS For personal use only Co-Investment Opportunities Fund II PE1 Statistics: (A$ millions) Capital Commitment $52.4 2018 A$743.7 million Capital Called $47.0 Vintage LP commitments Percent Called 89.8% Number of Investments 22 Fully invested; in value-creation mode with
Slide 32: Equity Co-Investments & Directs
EQUITY CO-INVESTMENTS & DIRECTS Our investments are made alongside premier GPs and span across multiple sectors and structures For personal use only Partner Detail Hard-to-Access Proprietary opportunity to invest in an international developer of social networking apps at a discount to Opportunities
Slide 33: Equity Funds
EQUITY FUNDS Secondary Opportunities Fund III Directly Held Secondaries For personal use only 2021 A$779.5 million Various A$51.3 Vintage LP commitments Vintage PE1 commitment Actively investing capital PE1 Statistics: (A$ millions) PE1 Statistics: (A$ millions) Capital Commitment $45.2 Capital Call
Slide 34: Equity Funds
EQUITY FUNDS Select risks include: management risk and risks related to sale of investments. For personal use only Project LaPinta Project Tidal Closing Date March 2021 Closing Date April 2021 Size1 A$3.7 million Size1 A$6.6 million Pricing2 30.8% discount at close Pricing2 39.5% discount at close T
Slide 35: Equity Funds
EQUITY FUNDS Portfolio of hard-to-access managers with strong track records of industry and transactional expertise For personal use only Primary Funds PE1 Statistics: (A$ millions) Capital Commitments $82.7 2017-2022 Capital Called $30.9 Vintage Percent Called 37.4% Number of Investments 14 Perform
Slide 36: Equity Funds
EQUITY FUNDS For personal use only Strategy Buyout Growth Equity Special Situations Manager Established manager with relationships across Hard-to-access, marquee manager that manages Global platform with expertise across asset Characteristics government and government-influenced markets capital for
Slide 37: Portfolio Return
PORTFOLIO RETURN For personal use only Cumulative NAV per Unit return since inception (23 April 2019 to 28 February 2022) Trailing period net returns to 28 February 2022 45% 1 Year 40.2% 40% 35% 2 Years (Annualised) 9.7% 30% Since Inception (Annualised) 12.3% 25% 20% 15% 10% 5% 0% -5% Mar-19 Jun-19
Slide 38: Key Risks of Private Equity Investing
KEY RISKS OF PRIVATE EQUITY INVESTING For personal use only PORTFOLIO Private companies in which funds have invested may involve a high degree of business and financial COMPANIES risk. Funds hold significant amounts of securities and other assets issued by private companies that are ILLIQUIDITY illi
Slide 39: Agenda
For personal use only AGENDA I Entitlement Offer II About GCM Grosvenor III Private Equity Investing IV Pengana Private Equity Trust V Case Studies VI Appendix: Notes and Disclosures PENGANA PRIVATE EQUITY TRUST (ASX: PE1) | PAGE 39
Slide 40: Bolt
BOLT Select risks include: industry competition, legal/regulatory risk, cash burn, FX risk. For personal use only Implementation Investment Initiation Status Investment Snapshot Co-Investment Private Equity March 2021 Unrealised Overview Approach Bolt is expected to sustain a This co-investment was
Slide 41: Gainwell Technologies
GAINWELL TECHNOLOGIES Select risks include: mature industry, regulatory risk, in-sourcing risk, potentially high entry valuation and leverage, and risks associated with the execution of a carve-out. For personal use only Implementation Investment Close Status Investment Snapshot Co-Investment Privat
Slide 42: Project Rambler
PROJECT RAMBLER Select risks include: management risk and risks related to sale of investments. For personal use only Implementation Investment Close Pricing Investment Snapshot Secondary Private Equity June 2021 Est. 31.3% discount at close Overview Thesis & Highlights Acquisition of five high-qual
Slide 43: Agenda
For personal use only AGENDA I Entitlement Offer II About GCM Grosvenor III Private Equity Investing IV Pengana Private Equity Trust V Case Studies VI Appendix: Notes and Disclosures PENGANA PRIVATE EQUITY TRUST (ASX: PE1) | PAGE 43
Slide 44: Burgiss Endnotes
BURGISS ENDNOTES For personal use only Source: BURGISS. Certain information, including benchmarks, is obtained from The Burgiss Group (“Burgiss”), an independent subscription-based data provider, which calculates and publishes quarterly performance information from cash flows and valuations collecte
Slide 45: Multi-Asset Class Fund II and III
MULTI-ASSET CLASS FUND II AND III For personal use only When reviewing this presentation relating to GCM Grosvenor Multi-Asset Class Fund III (“MAC III”), you should consider the following: MAC III held its first close in September 2021. In distinguishing a co-investment from a direct investment, a
Slide 46: GCM Grosvenor Co-Investment Opportunities Fund II, L.P.
GCM GROSVENOR CO-INVESTMENT OPPORTUNITIES FUND II, L.P. For personal use only In addition to the general disclosures discussed herein, please also consider the following when reviewing a report relating to GCM Grosvenor Co-Investment Opportunities Fund II, L.P. (the “Fund”). An investment in the Fun
Slide 47: Case Studies / Trade Examples
CASE STUDIES / TRADE EXAMPLES For personal use only In reviewing the case studies / trade examples (“Examples”) provided in this presentation, you should consider the following: This presentation does not purport to make any recommendations regarding, or to serve as a basis or analysis on which pers
Slide 48: GCM Grosvenor Secondary Opportunities Fund III
GCM GROSVENOR SECONDARY OPPORTUNITIES FUND III For personal use only GCM Grosvenor Secondary Opportunities Fund II, L.P. (“Fund II”) is a globally diversified specialized product that seeks to invest in mature private equity assets through secondary transactions, targeting small to midsized transact
Slide 49: Target Returns, Forward Looking Estimates, and Risk Parameters
TARGET RETURNS, FORWARD LOOKING ESTIMATES, AND RISK PARAMETERS For personal use only Target Returns, Forward Looking Estimates, and Risk Parameters: Target returns, forward looking estimates, and risk parameters are shown to illustrate the current risk/return profile of how the fund or investment is
Slide 50: Track Record – General Performance – PE, RE, and Infra
TRACK RECORD – GENERAL PERFORMANCE – PE, RE, AND INFRA For personal use only 1. Returns are annualized and calculated based on daily inflows and outflows from GCM Grosvenor’s underlying investments. No assurance can be given as to the value that may be ultimately realized by any of the underlying in
Slide 51: GCM Grosvenor
GCM GROSVENOR For personal use only GCM Grosvenor Inc. (NASDAQ: GCMG) (together with its affiliates, including Grosvenor Capital Management, L.P. and GCM Customized Fund Investment Group, L.P., “GCM Grosvenor”) is a global alternative asset management solutions provider across private equity, infras
Slide 52: GCM Grosvenor
GCM GROSVENOR For personal use only By your acceptance of GCM Information, you understand, acknowledge, and agree that: (a) GCM Information is proprietary, and you may not copy, transmit or distribute GCM Information, or any data or other information contained therein, or authorize such actions by o
Slide 53: Disclaimer
DISCLAIMER For personal use only This presentation is issued by Pengana Investment Management Limited (ABN 69 063 081 612, AFSL 219 462) (“Pengana” or “Responsible Entity”) as responsible entity of the Pengana Private Equity Trust (ARSN 630 923 643) (“Trust”) in relation to a pro rata non-renounceab
Slide 54: Disclaimer
DISCLAIMER For personal use only This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States and may not be distributed or released in the United States. The New Units to be offered and sold under the Offer set out in this prese
Slide 55: Pengana Private Equity Trust (ASX: PE1) – For More Information
For personal use only PENGANA PRIVATE EQUITY TRUST (ASX: PE1) FOR MORE PENGANA INVESTMENT MANAGEMENT LIMITED CLIENT SERVICE T: +61 2 8524 9900 INFORMATION ABN 69 063 081 612 E: [email protected] pengana.com/pe1 AFSL 219462 Levels 1, 2 & 3, 60 Martin Place, Sydney, NSW 2000 T: +61 2 8524 9900
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