Pengana Global Private Credit Trust · ASX:PCX
Pengana Global Private Credit Trust — Investor Presentation (October 2024)
18 slides from Pengana Global Private Credit Trust's investor presentation, Oct 29, 2024
Slide 1: Pengana Global Private Credit Trust webinar
For personal use only PENGANA GLOBAL PRIVATE CREDIT TRUST THIS WEBINAR WILL BEGIN SHORTLY
Slide 2: Disclaimer
DISCLAIMER Pengana Investment Management Limited (ACN 063 081 612, AFSL 219462) (“Pengana”) is the issuer of this document and units in the Pengana Global Private Credit Trust (ARSN 673 024 489, ASX: PCX). For personal use only The information provided in this document is of a general nature only an
Slide 3: Investor Update Webinar October 2024
For personal use only PENGANA GLOBAL PRIVATE CREDIT TRUST INVESTOR UPDATE WEBINAR OCTOBER 2024
Slide 4: Pengana Credit Overview
PENGANA CREDIT OVERVIEW Bringing institutional quality global private credit to Australian investors 1 For personal use only Global Private Credit: Essential to Portfolio Construction Master Portfolio • Attractive risk adjusted returns • Low correlation • Low volatility • Large opportunity set • Mas
Slide 5: Attractive Structural Opportunity
ATTRACTIVE STRUCTURAL OPPORTUNITY Banks are scaling back lending as For personal use only Private lenders now the first “port of call” regulation decreases their appetite for for growing subset of borrowers certain activities Bank Share of US and European Middle Market Global Private Credit – Growth
Slide 6: Attractive Investor Proposition
ATTRACTIVE INVESTOR PROPOSITION Attractive characteristics of Global Private Credit Returns Attractive, stable returns with low volatility as illiquidity premium is captured. Returns driven For personal use only predominantly by yield with capital appreciation available in some strategies Borrow
Slide 7: A Broad Opportunity Set
A BROAD OPPORTUNITY SET Bilaterally negotiated loans, primarily to companies earning USD$10-$250 million EBITDA (“Middle Market”) For personal use only Senior Secured – these loans have first right to the cash flows and assets of a company for payment of interest and repayment of debts. They will
Slide 8: Why Global?
WHY GLOBAL? Australia Global (US and Europe) For personal use only 16% 10% Banks Private Credit 90% 84% • Predominantly commercial real estate, asset- • Highly diversified backed securities & syndicated loans • Wide borrower and investor acceptance • Smaller scale other strategies • Long tenured man
Slide 9: Market Overview
MARKET OVERVIEW Market environment is favourable for Global Private Credit • Interest rate easing cycle has commenced but questions remain: inflation trajectory, economic growth and conditions, geopolitical concerns For personal use only • Increased investor appetite combined with limited new supply
Slide 10: Our Portfolio Is Optimally Structured
OUR PORTFOLIO IS OPTIMALLY STRUCTURED 1. Resilience - Bilateral, senior secured - Relative value optionality For personal use only - All weather 5. Multi-Manager 2. Geographic Diversification - Reduce concentration - US and Europe - Market segment - Different structural and - Portfolio size competit
Slide 11: Portfolio Construction Building Blocks
PORTFOLIO CONSTRUCTION BUILDING BLOCKS Income Balanced Total Return use only • Income focus, through cash • Exploit the broader PC • Equity-like returns through debt coupons opportunity set investments • Capital preservation/seniority • Higher contractual returns • Capitalise on dislocations- Goals
Slide 12: Case Study: Income
CASE STUDY: INCOME TRANSACTION: Financing Acquisition of B2B E-Commerce Platform For personal use only TRANSACTION BACKGROUND COMPANY CREDIT HIGHLIGHTS ATTRACTIVE LOAN TERMS • Client seeking to acquire leading B2B • Recession resilient: growth through GFC and • Attractive LVR: $75m loan eCommerce pr
Slide 13: Case Study: Total Return
CASE STUDY: TOTAL RETURN TRANSACTION: Capital Relief for US Regional Bank For personal use only TRANSACTION BACKGROUND DEAL CREDIT HIGHLIGHTS ATTRACTIVE TERMS • Changing regulatory requirements put • Highly diversified portfolio of assets with • Attractive U/W IRR: $386m US Regional Bank under liqui
Slide 14: Portfolio Look Through as at Sep
PORTFOLIO LOOK THROUGH AS AT 30 SEP 24 Total RoW Cash Return Cash 0% 12% 15% 12% For personal use only Balanced 16% Fund Geography US Allocation 58% Europe 30% Income 58% Cash 12% Cash 12% Other Equity 1% 8% Credit Opps 11% Strategy Sub / Mezz Seniority 12% Direct Lending Structured 61% 1st Lien Fin
Slide 15: PCX Performance Update
PCX PERFORMANCE UPDATE • All capital raised has been fully deployed. For personal use only • Underlying performance of our managers at or above their target returns. • Our monthly distributions are meeting our 7% minimum target distribution funded strong cash flows from our Income managers. • Regard
Slide 16: Key Takeaways
KEY TAKEAWAYS For personal use only MACRO ENVIRONMENT REMAINS ATTRACTIVE FOR GLOBAL PRIVATE CREDIT OUR PORTFOLIO IS PERFORMING WELL WITH MANAGERS PERFORMING AT OR ABOVE TARGET RETURNS WIDE DIVERSIFICATION AND QUALITY OF MANAGERS POSITION FUND TO DELIVER ATTRACTIVE RETURNS THROUGH MARKET UNCERTAINTY
Slide 17: Q&A
For personal use only PENGANA GLOBAL PRIVATE CREDIT TRUST Q&A
Slide 18: For More Information
For personal use only PENGANA GLOBAL PRIVATE CREDIT TRUST FOR MORE INFORMATION PENGANA.COM CLIENT SERVICE PENGANA INVESTMENT MANAGEMENT LIMITED T: +61 2 8524 9900 ACN 063 081 612 E: clientservice@pengana.com AFSL 219 462 Suite 1, Level 27, Governor Phillip Tower, 1 Farrer Place, Sydney, NSW, 2000
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