Pengana Private Equity Trust · ASX:PE1
Pengana Private Equity Trust — Investor Presentation (May 2020)
34 slides from Pengana Private Equity Trust's investor presentation, May 14, 2020
Slide 1: Pengana Fund Manager Webinar Series
For personal use only INDEPENDENT TEAMS DISTINCT STRATEGIES UNIQUE PERSPECTIVES (WEBINAR) PENGANA FUND MANAGER WEBINAR SERIES
Slide 2: Private Equity opportunities in times of crisis
For personal use only ASX: PE1 PENGANA PRIVATE EQUITY TRUST Private Equity opportunities in times of crisis Russel Fred Jonathan Corey Pillemer Pollock Hirschtritt LoPrete The Notes and Disclosures following this presentation are an integral part of this presentation and must be read in connection w
Slide 3: Executive Summary
EXECUTIVE SUMMARY For personal use only With only ~42% of its capital invested to date, we believe PE1 is in a strong position to take advantage of market dislocation and to execute on high quality opportunities that present themselves as market conditions develop. ▪ We have been working hard to ass
Slide 4: Agenda
For personal use only AGENDA I Private Equity Market Update II Pengana Private Equity Trust III Appendix 1: GICS Sector Risk Assessment Key IV Appendix 2: Valuations V Appendix 3: Notes and Disclosures
Slide 5: Private Equity Market Impact
PRIVATE EQUITY MARKET IMPACT For personal use only Although the full impact of the coronavirus pandemic and market volatility on the global economy will not be fully understood for some time, we believe that investors partnered with cycle-tested managers and who have appropriate level of diversifica
Slide 6: Private Equity in Different Market Environments
PRIVATE EQUITY IN DIFFERENT MARKET ENVIRONMENTS For personal use only Private Equity IRR: Since inception pooled net IRR for applicable Vintage buyout funds (2004-2006) Public Market Equivalent: 18.0% MSCI World (TR) Index 14.9% Public Market (Buy and Hold): Annualised rate of return for MSCI World
Slide 7: 2020 Primary Outlook
2020 PRIMARY OUTLOOK For personal use only State of the Market Potential Opportunities Fundraising ▪ Operating performance decline and ▪ Recessionary periods have generated ▪ Fundraising may slow with particular dramatic changes to human capital some of the most attractive vintage impact on first-ti
Slide 8: 2020 Co-Investment Outlook
2020 CO-INVESTMENT OUTLOOK For personal use only State of the Market Outlook Potential Opportunities ▪ Quarantines and other restrictions ▪ Debt financing to become more ▪ Follow-on opportunities to provide driving a sharp fall in spending challenging liquidity to challenged companies, or to allow m
Slide 9: 2020 Secondaries Outlook
2020 SECONDARIES OUTLOOK For personal use only State of the Market Potential Opportunities Fundraising ▪ Slowdown in deal activity expected to ▪ Structured equity solutions ▪ Fundraising activity not expected to last until Q3 2020 as sellers wait on materially slow down clarity of valuations › Negot
Slide 10: Agenda
For personal use only AGENDA I Private Equity Market Update II Pengana Private Equity Trust III Appendix 1: GICS Sector Risk Assessment Key IV Appendix 2: Valuations V Appendix 3: Notes and Disclosures
Slide 11: PE1 Strategy
PE1 STRATEGY For personal use only PE1 seeks to provide investors with a diversified set of exposures to global private equity through a customised mandate managed by Grosvenor Capital Management, L.P. (“GCM Grosvenor”). Program Details Current Market Cap A$230 million Internal Return Target 8 - 14%
Slide 12: Steady State – Illustrative Target Portfolio Diversification
STEADY STATE – ILLUSTRATIVE TARGET PORTFOLIO DIVERSIFICATION For personal use only Vintage Year Time of Commitment Investments typically made over a one Primary funds 1-4 years to four year commitment period Potential for backwards vintage Secondaries 10-15 years year diversification Typically funde
Slide 13: Illustrative Progression to Long-Term Target Portfolio
ILLUSTRATIVE PROGRESSION TO LONG-TERM TARGET PORTFOLIO UNDER THE IPO For personal use only Expected portfolio progression towards the long-term target portfolio has been designed to meet the objective of the Trust including income and capital growth whilst simultaneously providing a diversified and
Slide 14: Current Portfolio Allocation
CURRENT PORTFOLIO ALLOCATION For personal use only PE1’s portfolio development is tracking ahead of schedule. 4% 2% 4% Alignment Shares Short Duration Credit and Cash 54% 61% Private Credit (Excl. 69% Short Duration Credit) Opportunistic 2% 28% PE Secondaries 12% 16% 1% 8% 1% 2% 2% PE Primaries 11%
Slide 15: Current Portfolio Allocation: Private Equity Commitments
CURRENT PORTFOLIO ALLOCATION Breakdown of private equity commitments For personal use only 90% of PE1’s private markets portfolio committed across PE co- 47% of these commitments investments, PE primary funds and already funded opportunistic investments A$87m A$57m A$49m A$64m A$5m A$21m A$44m A$3m
Slide 16: Current Portfolio Allocation: Private Market Portfolio Snapshot
CURRENT PORTFOLIO ALLOCATION For personal use only PE1’s private market portfolio snapshot (as at 30 April 2020 in A$m) Earliest Vintage Committed Funded Investment Name Commitment Distributions Year Amount Amount Date Private Equity Primary Funds Vista Equity Endeavor Fund II 2019 Jun-19 6.1 0.5 0.
Slide 17: PE1 Risk Assessment Based on GICS Sector Exposures
PE1 RISK ASSESSMENT BASED ON GICS SECTOR EXPOSURES For personal use only Based on a GICS sector exposure analysis, only ~13% of the PE1 portfolio is at high risk due to potential issues related to industries most impacted by COVID-19 and the current economic downturn. Risk Assessment Based on GICS S
Slide 18: Private Equity Primary Funds
PRIVATE EQUITY PRIMARY FUNDS For personal use only Broad, differentiated sourcing and unique access to private equity funds and managers from almost 20 years of primary fund investment experience. Investing across buyout, Currently committed to 7 Expect to execute one additional special situations a
Slide 19: Private Equity Co-Investments
PRIVATE EQUITY CO-INVESTMENTS GCM Grosvenor Co-Investment Opportunities Fund II (GCF II) For personal use only Targeting co-investments alongside high quality middle market buyout fund managers. Highly selective and active Funded 14 co-investments to date Established revenue models, approach with a
Slide 20: Private Equity Secondaries
PRIVATE EQUITY SECONDARIES For personal use only Leveraging strong relationships we have as an investor in nearly 600 private equity funds to drive superior sourcing and market intelligence. Target niche opportunities Focus on middle market, Completed PE1’s first secondary with difficult to access w
Slide 21: Opportunistic Investments
OPPORTUNISTIC INVESTMENTS GCM Grosvenor Multi-Asset Class Fund II (MAC II) For personal use only A multi-asset class fund with the flexibility to invest opportunistically in the best ideas generated across GCM Grosvenor’s alternatives platform. Flexible implementation, Currently committed to 24 gene
Slide 22: Agenda
For personal use only AGENDA I Private Equity Market Update II Pengana Private Equity Trust III Appendix 1: GICS Sector Risk Assessment Key IV Appendix 2: Valuations V Appendix 3: Notes and Disclosures
Slide 23: GICS Sector Risk Assessment
GICS SECTOR RISK ASSESSMENT For personal use only Risk Assessments as of April 24, 2020 Risk Assessment Key GICS Sector Assessed Risk Level Consumer Discretionary High Energy High Financials Medium Industrials Medium Real Estate Medium Communication Services Low Consumer Staples Low Health Care Low
Slide 24: Agenda
For personal use only AGENDA I Private Equity Market Update II Pengana Private Equity Trust III Appendix 1: GICS Sector Risk Assessment Key IV Appendix 2: Valuations V Appendix 3: Notes and Disclosures
Slide 25: Valuations
VALUATIONS For personal use only Overview ▪ Investments are valued at fair value as defined by US GAAP1 ▪ The firm’s Valuation Committee, which is chaired by the Chief Financial Officer and is comprised of a majority of senior personnel that are independent of the Investment Team, is responsible for
Slide 26: Valuation Process
VALUATION PROCESS For personal use only Critical Path ▪ Direct investment and co-investment valuations are prepared by a two-person team of investment professionals assigned to each valuation and submitted to the dedicated Valuation Team ▪ For investments in underlying funds, net asset values are re
Slide 27: Valuation – Co-Investments
VALUATION – CO-INVESTMENTS For personal use only The method that GCM Grosvenor uses to determine the fair value of co-investments is based on the best information available as of the valuation date. Co-investment valuations are prepared by a team of investment professionals assigned to each valuatio
Slide 28: Q&A
For personal use only Q&A PENGANA.COM / WEBINAR [email protected] Russel Fred Jonathan Corey Pillemer Pollock Hirschtritt LoPrete The Notes and Disclosures following this presentation are an integral part of this presentation and must be read in connection with your review of this presentati
Slide 29: Agenda
For personal use only AGENDA I Private Equity Market Update II Pengana Private Equity Trust III Appendix 1: GICS Sector Risk Assessment Key IV Appendix 2: Valuations V Appendix 3: Notes and Disclosures
Slide 30: 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 31: GCM Grosvenor
GCM GROSVENOR For personal use only The information contained in this presentation (“GCM Information”) relates to GCM Grosvenor, to one or more investment vehicles/accounts managed or advised by GCM Grosvenor (the “GCM Funds”) and/or to one or more investment vehicles/accounts (“Underlying Funds”) m
Slide 32: GCM Grosvenor
GCM GROSVENOR For personal use only By your acceptance of GCM Information, you understand, acknowledge, and agree that GCM Information is confidential and proprietary, and you may not copy, transmit or distribute GCM Information, or any data or other information contained therein, or authorize such
Slide 33: Disclaimer
DISCLAIMER For personal use only This document has been prepared by Pengana Capital Group Limited ACN 059 300 426 and Pengana Investment Management Limited (ABN 69 063 081 612, AFSL 219 462) (collectively Pengana) and is provided for information purposes only. This document does not constitute an of
Slide 34: Investment Manager
For personal use only INVESTMENT MANAGER Grosvenor Capital Management, L.P. RESPONSIBLE ENTITY & MANAGER Pengana Investment Management Limited ABN 69 063 612 AFSL 219 462 CONTACT T: +61 2 8524 9900 E: [email protected] PENGANA.COM
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