Pengana Private Equity Trust · ASX:PE1
Pengana Private Equity Trust — Investor Presentation (September 2024)
22 slides from Pengana Private Equity Trust's investor presentation, Sep 25, 2024
Slide 1: Pengana Private Equity Trust: Navigating Private Equity
For personal use only PENGANA PRIVATE EQUITY TRUST (ASX: PE1) NAVIGATING PRIVATE EQUITY SEPTEMBER 2024
Slide 2: Disclaimer
DISCLAIMER 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-renounceable entitlement offer o
Slide 3: Agenda
For personal use only AGENDA I Market Update II Portfolio Update III Q&A IV Appendix – Notes & Disclosures PENGANA PRIVATE EQUITY TRUST (ASX: PE1) | PAGE 3
Slide 4: Elevated Valuations and Uncertainty
ELEVATED VALUATIONS AND UNCERTAINTY Markets are achieving new all time highs as inflation comes under control and the prospect of lower interest rates in now in sight. However, elevated valuations, weakening labor markets and persistent fiscal deficits amid a volatile geopolitical environment are so
Slide 5: Inflation and Rates Coming Down
INFLATION AND RATES COMING DOWN Recent inflation data has given the Federal Reserve space to begin cutting interest rates, the market now anticipates rate cuts will begin in September. For personal use only INFLATION TRACKING TOWARDS TARGET RATE CUTS ARE BACK ON THE TABLE U.S. Inflation measures 201
Slide 6: Elections in Focus
ELECTIONS IN FOCUS The geopolitical environment is in flux. Major elections have already led to changes in governing parties across a number of major economies. The November U.S. election is uncertain. MAJOR GLOBAL ELECTIONS YEAR TO For personal use only THERE IS EXTENSIVE VOLATILITY IN OUTCOME PROB
Slide 7: Concentrated Equity Market
CONCENTRATED EQUITY MARKET Strong 1H performance in equity indices was concentrated. Outsize performance in a handful of mega-cap technology stocks drove index performance, led by Nvidia’s 150% 1H 2024 return. For personal use only STRONG EQUITY RETURNS DRIVEN BY A RECORD LOW SHARE OF S&P 500 HANDFU
Slide 8: Entry Valuations Have Come Down
ENTRY VALUATIONS HAVE COME DOWN FROM LOFTY PEAKS… Normalising entry multiples and debt to equity levels for US buyout transactions (which is where PE1 focuses) should signal a healthy return of private equity dealmaking, albeit in a more attractive investment For personal use only environment. US AV
Slide 9: Helping to Lead to Increased Deal Activity
…HELPING TO LEAD TO INCREASED DEAL ACTIVITY PE deal activity is on pace to achieve its third highest volume in the last eleven years. For personal use only $1 ,40 0 12 ,000 9,907 8,958 7,800 6,397 6,364 6,104 5,248 4,210 4,598 4,733 4,380 $482 $526 $456 $570 $643 $662 $583 $1,210 $940 $713 $415 $- 0
Slide 10: Agenda
For personal use only AGENDA I Market Update II Portfolio Update III Q&A IV Appendix – Notes & Disclosures PENGANA PRIVATE EQUITY TRUST (ASX: PE1) | PAGE 10
Slide 11: Portfolio Allocation
PORTFOLIO ALLOCATION Providing diversification across underlying investment managers, vintages, geographies, sectors, and strategies For personal use only Exposure to over 500 companies Investments diversified across: › All sectors Implementation › Vintages1 (2003 to present) Method2 › Regions (U.S.
Slide 12: Portfolio Changes – Last Financial Year
PORTFOLIO CHANGES – LAST FINANCIAL YEAR Reaching full deployment For personal use only 30 June 2023 30 June 2024 Equity Co-Investments & Direct Investments 55% Equity Co-Investments & Direct Investments 63% Equity Funds 25% Equity Funds 30% Private Credit 2% Private Credit 5% Cash 18% Cash 2% PE1 re
Slide 13: Portfolio Diversification
PORTFOLIO DIVERSIFICATION Providing investors with broadly diversified exposure to over 500 companies, helping to generate net returns to PE1 of 15% IRR and 1.4x MOIC through 31 August 2024. For personal use only Sub-Asset Class Geography Industry Buyout 58% North America 78% Industrials 20% Structu
Slide 14: NAV Performance
NAV PERFORMANCE 60% For personal use only 50% 40% 30% 20% 10% 0% -10% Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Sep-23 Mar-24 1 month 1 year 3 years p.a. Since inception p.a. NAV per unit -4.4% -3.4% 6.3% 8.2% As of 31 August 2024. Past performance is not a reliable indicator of
Slide 15: Recent Portfolio Developments
RECENT PORTFOLIO DEVELOPMENTS • Strong performance in our middle market buyout co-investment strategy continues – GCF II is currently top quartile from an IRR and DPI perspective1; ~61% of the investments in the portfolio have already had a full or partial realisation, returning more than 80% of inv
Slide 16: Top Holdings
TOP 10 HOLDINGS No single portfolio company represents more than 5% of aggregate private market investments NAV Portfolio Company LP Value (A$m) % of Total LP Value For personal use only $21.6 4.6% $17.6 3.8% $16.5 3.6% $13.2 2.8% $12.2 2.6% $10.7 2.3% $10.3 2.2% $10.2 2.2% $10.2 2.2% $9.5 2.0% As o
Slide 17: Performance Against Benchmarks
PERFORMANCE AGAINST BENCHMARKS Other than in the early stages of PE1’s portfolio build-up, the PE1 portfolio has consistently outperformed relevant public markets and industry benchmarks For personal use only Investment IRR1 Comparison 0 42.9% PE1 Underlying Investments 42.4% MSCI World (AUD) PME Ru
Slide 18: Select Areas of Focus in Private Equity
SELECT AREAS OF FOCUS IN PRIVATE EQUITY CONSUMER HEALTH GOVERNMENT Focus on end STAPLES CARE SERVICES For personal use only SECTORS markets that have resilient demand OF INTEREST drivers and / or secular tailwinds FINANCIAL INFORMATION SERVICES TECHNOLOGY Partner with sponsors who COMPELLING have re
Slide 19: Private Credit Opportunity Set
PRIVATE CREDIT OPPORTUNITY SET • The retrenchment of banks has led to a void of capital, particularly in non-corporate lending • Private credit continues to gain traction as companies look for speed of execution, tailored transactions, and certainty of closing For personal use only CORPORATE DIRECT
Slide 20: 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: clientservice@pengana.com pengana.com/pe1 AFSL 219462 Suite 1, Level 27 Governor Phillip Tower, 1 Farrer Place Sydney, NSW,
Slide 21: Disclaimer
DISCLAIMER This presentation is being provided by Grosvenor Capital Management, L.P. and/or GCM Customized Fund Investment Group, L.P. (together with their affiliates, “GCM Grosvenor”). GCM Grosvenor (NASDAQ: GCMG) is a global alternative asset management solutions provider across private equity, in
Slide 22: Disclaimer
DISCLAIMER To the extent GCM Information contains “forward-looking” statements, including within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such statements represent GCM Grosvenor's good-faith expectations
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