Pengana Capital Group Ltd. · ASX:PCG
Pengana Capital — Investor Presentation (October 2024)
19 slides from Pengana Capital's investor presentation, Oct 10, 2024
Slide 1: Shareholder Presentation – ASX Announcement
ASX ANNOUNCEMENT PENGANA CAPITAL GROUP LIMITED SHAREHOLDER PRESENTATION Date: 10 October 2024 Pengana Capital Group Limited (ASX: PCG) attaches a copy of the presentation to be delivered to shareholders by CEO Russel Pillemer at today’s shareholder webinar: For personal use only DATE: Thursday 10 Oc
Slide 2: Investor Presentation: Pioneering Tomorrow, Today
For personal use only INVESTOR PRESENTATION PIONEERING TOMORROW, TODAY.
Slide 3: Table of Contents
For personal use only TABLE OF CONTENTS 1. Pengana Overview 2. Strategic Focus - Private Credit 3. Shareholder Opportunity
Slide 4: Pengana Overview
For personal use only PENGANA OVERVIEW
Slide 5: Pengana Overview
PENGANA OVERVIEW Established in 2003, Pengana Capital Group Limited (‘PCG’) is a diversified fund manager with $3.4bn of For personal use only funds under management (‘FUM’)1 • Highly diversified • Good fee margins, and diversified sources of performance fees across 74% of FUM. • Offering both unlis
Slide 6: Strategic Focus - Private Credit
STRATEGIC FOCUS - For personal use only PRIVATE CREDIT
Slide 7: Australian Funds Management Market
AUSTRALIAN FUNDS MANAGEMENT MARKET 1. Australia is one of the most attractive global markets for fund managers due to Superannuation For personal use only 2. The non-institutional segment is the most attractive part of the Australian market • Consists of SMSF’s as well as the substantial savings tha
Slide 8: Strategic Reposition to Focus on Private Markets Strategies
STRATEGIC REPOSITION TO FOCUS ON PRIVATE MARKETS STRATEGIES • Most attractive part of the funds management market due to growth, returns and For personal use only stability: • Shortage of strategies available to Australian non-institutional investors. • Globally, private market focussed fund manager
Slide 9: Pengana Global Private Credit
PENGANA GLOBAL PRIVATE CREDIT • Global Private Credit master portfolio comprised of 20 underlying funds, selected by Mercer: For personal use only • Unparalleled manager access allows purpose-built exposures with varying risk/return targets. • Launched multiple distinct vehicles in FY 2024, with mor
Slide 10: PCG's Current Global Private Credit Offerings
PCG’S CURRENT GLOBAL PRIVATE CREDIT OFFERINGS TAILORED STRATEGIC For personal use only ACCOUNTS PARTNERSHIPS • Retail, listed investment structure • Direct to consumer (‘DTC’) offering - • Wholesale fund • For institutional clients, large • Pengana entered into its first • Recent IPO raised $157m fr
Slide 11: Financial Impact on PCG
FINANCIAL IMPACT ON PCG • Global Private Credit is generally a high fee margin business for PCG: For personal use only • Current offerings have varying net revenue margins - on average are targeted be >1.0%. • TermPlus is expected to be a key profit driver over the medium term: • Spread-based revenu
Slide 12: Shareholder Opportunity
SHAREHOLDER For personal use only OPPORTUNITY
Slide 13: Funds Under Management
FUNDS UNDER MANAGEMENT (“FUM”)1 HISTORICAL GROWTH IN FUM ($B)2 For personal use only • Listed Equity Funds: $4.5 • Stable base over many years $3.97 $4.0 $3.52 • High quality brand $3.5 $3.13 $3.27 $3.13 $3.33 $3.35 $3.05 • Business now re-positioned to Private Markets: $3.0 $2.88 $2.53 • Potential
Slide 14: Leveraged to Growth and Performance Fees
LEVERAGED TO GROWTH AND PERFORMANCE FEES ($M) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 For personal use only Management Fees 35.9 36.0 41.8 41.2 38.1 Performance Fees 3.1 - 32.7 27.5 6.1 Total Fees 40.0 36.0 74.5 68.7 68.7 Operating expenses (24.2) (21.1) (19.4) (25.0) (21.2) Team Profit Share (11.7)
Slide 15: Annual Gross Fee Margin
ANNUAL GROSS FEE MARGIN 3.5% For personal use only 3.23% The funds that delivered performance fees at 30 June 2024 continue to perform close to or above their respective high water-marks. This will not necessarily result in Pengana receiving performance fees as performance fees will only be next cry
Slide 16: Employee Share Plan Loans Due October 2024
EMPLOYEE SHARE PLAN LOANS DUE 31 OCTOBER 2024 Shares % accretion if $million $ per share ‘million cancelled For personal use only Loans due for repayment 31 October 2024 – Tranche 1 11 11 $1.02 11% Loans due for repayment 31 October 2024 – Tranche 2 13 11 $1.21 11% Total loans due for repayment 31 O
Slide 17: Sources of Potential Valuation Upside
SOURCES OF POTENTIAL VALUATION UPSIDE For personal use only There currently appears to be subdued equity market interest in the stock due to: • Low free float of shares. • Small market capitalisation. Current market value does not reflect significant potential upside, including from: • Re-emergence
Slide 18: Disclaimer
DISCLAIMER For personal use only This presentation has been prepared by Pengana Capital Group Limited (ABN 43 059 300 426) (“PCG”). The information in this presentation is current as at 29 August 2024. This presentation is not an offer or invitation for subscription or purchase of securities or a re
Slide 19: For More Information
For personal use only FOR MORE INFORMATION PENGANA.COM PENGANA CAPITAL GROUP LIMITED Suite 1, Level 27, CLIENT SERVICE ABN 30 103 800 568 Governor Phillip Tower, T: +61 2 8524 9900 AFSL 226566 1 Farrer Place, E: clientservice@pengana.com Sydney, NSW, 2000
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