Pengana Private Equity Trust · ASX:PE1
Pengana Private Equity Trust — Investor Presentation (June 2020)
35 slides from Pengana Private Equity Trust's investor presentation, Jun 19, 2020
Slide 1: Pengana Private Equity Trust Offer Period 19 June - 6 July 2020
For personal use only ASX: PE1 PENGANA PRIVATE EQUITY TRUST OFFER PERIOD: 19 JUNE - 6 JULY 2020 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 presentation. GCM Grosvenor®, Grosvenor®, Grosvenor
Slide 2: Agenda
For personal use only AGENDA I Rights Issue II Private Equity Market Update III Pengana Private Equity Trust IV Appendix: Notes and Disclosures
Slide 3: Entitlement Offer
ENTITLEMENT OFFER For personal use only An offer to eligible unitholders to subscribe for 1 new unit for every 3 units held on the record date of 16 June 2020 Under a shortfall facility, The offer will only be The issue price per new On 18 June, PE1 eligible unitholders may open from 19 June to 6 un
Slide 4: Why Now?
WHY NOW? We have increased capital deployment since the crisis began with 46% invested as at the end of May 2020 (and a further 53% is committed but not yet For personal use only invested), and we believe additional capital will enable the Trust to invest in new opportunities that will be significan
Slide 5: Investor Demand
INVESTOR DEMAND For personal use only The attractiveness of the offer is enhanced by the opportunity to subscribe for new units at NAV. Due to investor demand, units have traded predominantly at a premium to NAV since listing. Premium / (Discount) Since Listing on the ASX to the end of May 2020 30%
Slide 6: Important Dates
IMPORTANT DATES For personal use only Announcement of the Offer 11 June 2020 Units trade on an 'ex' basis in respect of the Offer 15 June 2020 Record Date for eligibility in the Offer (7.00 pm Sydney time) 16 June 2020 June distribution ex date 18 June 2020 June distribution record date 19 June 2020
Slide 7: Agenda
For personal use only AGENDA I Rights Issue II Private Equity Market Update III Pengana Private Equity Trust IV Appendix: Notes and Disclosures
Slide 8: Impact of the COVID-19 Crisis on the PE Market
IMPACT OF THE COVID-19 CRISIS ON THE PE MARKET 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 For personal use only cycle-tested managers, and who have appropriate l
Slide 9: 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 10: Outlook
OUTLOOK For personal use only Although private equity valuations declined less than listed assets through the crisis, valuations were significantly lower in late March. However, based on current listed market indications we anticipate a strong increase in the value of our underlying investments over
Slide 11: 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 12: 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 13: 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 14: Agenda
For personal use only AGENDA I Rights Issue II Private Equity Market Update III Pengana Private Equity Trust IV Appendix: Notes and Disclosures
Slide 15: 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”). Market Cap A$271 million as at the end of May 2020 The Trust seeks to generate,
Slide 16: 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 17: 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 18: Diversification of Long-Term Target Portfolio
DIVERSIFICATION OF LONG-TERM TARGET PORTFOLIO For personal use only The long-term target portfolio is anticipated to provide diversification across underlying companies STRATEGY LONG-TERM ILLUSTRATIVE ILLUSTRATIVE TARGET NUMBER OF NUMBER OF ALLOCATION UNDERLYING UNDERLYING RANGE OF FUNDS PORTFOLIO P
Slide 19: Portfolio Development to Date
PORTFOLIO DEVELOPMENT TO DATE For personal use only PE1’s portfolio development is tracking ahead of the IPO schedule. 2% 4% Alignment Shares Short Duration Credit and Cash 54% 61% Private Credit Opportunistic 2% 28% 12% PE Secondaries 1% 8% 2% 2% PE Primaries 12% 11% 30 Apr 2020 30 Apr 2020 PE Co-I
Slide 20: Current Portfolio Allocation
CURRENT PORTFOLIO ALLOCATION Breakdown of private equity commitments For personal use only 99% of PE1’s private markets portfolio committed across PE co- 46% of these commitments investments, PE primary funds and already funded opportunistic investments A$86m A$54m A$56m A$5m A$64m A$21m A$49m A$3m
Slide 21: Current Portfolio Allocation
CURRENT PORTFOLIO ALLOCATION For personal use only PE1’s private market portfolio snapshot (as at 31 May 2020 in A$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 6.0 0.5 - Ca
Slide 22: Trust Performance
TRUST PERFORMANCE For personal use only 3.3% net return of the Trust since Listing on the ASX to the end of May 2020 # Performance Since Listing on the ASX to the End of May 2020 # $1.70 $1.60 $1.50 ASX Unit price $1.40 2 NAV per Unit $1.30 1 $1.20 1 $0.0250 Distribution $1.10 2 $0.0125 Distribution
Slide 23: PE1 Positioning
PE1 POSITIONING For personal use only With only 46% of its capital invested to date and a further 53% committed but not yet invested, 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 conditio
Slide 24: 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, Several funds expected to come to Currently committed to 8 special situations
Slide 25: Private Equity Co-Investments
PRIVATE EQUITY CO-INVESTMENTS GCM Grosvenor Co-Investment Opportunities Fund II (GCF II) Targeting co-investments alongside high quality middle market buyout fund managers. For personal use only Highly selective and active Funded 14 co-investments to date Established revenue models, approach with a
Slide 26: 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 27: 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 28: Key Risks
KEY RISKS For personal use only PORTFOLIO Private companies in which funds have invested may involve a high degree of business and financial COMPANIES risk. Funds may hold significant amounts of securities and other assets issued by private companies that ILLIQUIDITY are illiquid. During periods of
Slide 29: Agenda
For personal use only AGENDA I Rights Issue II Private Equity Market Update III Pengana Private Equity Trust IV Appendix: 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 Certain 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
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 proprietary, and you may not copy, transmit or distribute GCM Information, or any data or other information contained therein, or authorize such actions by others
Slide 33: Disclaimer
DISCLAIMER For personal use only This presentation has been prepared 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-re
Slide 34: 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 35: Investment Manager
For personal use only INVESTMENT MANAGER Grosvenor Capital Management, L.P. RESPONSIBLE ENTITY & ISSUER Pengana Investment Management Limited ABN 69 063 081 612 AFSL 219 462 CONTACT T: +61 2 8524 9900 E: [email protected] PENGANA.COM
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