Pengana Capital Group further bolsters Private Credit arm with the appointment of Mercer as investment advisor

L to R: Nehemiah Richardson, Simon Eagleton and Russel Pillemer.

Pengana Capital Group has announced the appointment of global investment powerhouse Mercer to act as investment advisor on the portfolio construction for its recently launched private credit arm, Pengana Credit Pty Ltd (Pengana Credit).

This strategic appointment marks another significant milestone in the group’s build out of its private credit capability, and follows a $200m seed investment from Washington H. Soul Pattinson as part of a joint venture to unlock access to a suite of global private credit investments previously inaccessible to most Australian investors.

The Pengana Credit appointment is one of the first of its kind for Mercer in Australia. Mercer is a global investments and retirement leader with US$16.45^[1] trillion in assets under advisement, and Pengana Credit will look to leverage Mercer’s global footprint, access and investment expertise.

Pengana Capital Group CEO, Russel Pillemer, says the group is thrilled to welcome Mercer to the table, whose depth and breadth of global investment reach across private credit markets is a major advantage. “Our investors will benefit from Mercer’s scale and access to private credit opportunities across the globe.

“Pengana Credit expects to release several unique private credit investments to market, all of which will benefit from this strategic investment appointment.

“We are delighted to have secured Mercer’s commitment to support our plans to democratise global private credit investments for both Australian retail and high net worth investors.”

Mr Pillemer said private credit has developed into a major asset class over the last two decades, offering outstanding diversification and returns. “Private credit has seen phenomenal growth around the globe as one of the most exciting asset classes available, yet until now there has been a severe lack of global private credit investment options in Australia.

“We plan to change that with Mercer’s support, along with the backing of Soul Patts”, Mr Pillemer said.

Simon Eagleton, Investments Leader for Mercer in the Pacific region said: “Private credit is a valuable and highly sought-after asset class, and we’re delighted to be working with Pengana on their new offering in this space. The Pengana team’s innovative and forward-thinking approach, coupled with our global credentials and capability, delivers a compelling proposition for Australian investors looking to access global private credit investments.”

Mercer boasts extensive capability in global investment markets, with over 2,000 investment professionals around the globe working to improve investment outcomes for investors. Their alternative investments practice advises on US$164 billion^[2] in global alternatives assets, with 240 investment professionals dedicated to alternative asset classes.

As Pengana continues to position itself as a leader in investment innovation, this strategic appointment reflects the group’s continued commitment to assembling a top-notch team that brings together some of the brightest minds in the industry.

In June, Pengana Credit announced it had appointed former JP Morgan and Merrill Lynch Executive Nehemiah Richardson as CEO, and former Citi Australia Treasurer Charles Finkelstein as Chief Investment Officer.

Mr Richardson noted the significance of this Mercer appointment as investment advisor with regard to the “value Mercer adds to the construction of the portfolios which will help underpin attractive floating rate income aimed at providing welcome relief to investors who are concerned about preserving the value of their money, while earning accretive returns.” Mr Richardson noted that “It has been fantastic to be able to work with Mercer’s local and global team to gain access to global managers that underpin our investment proposition.”

———-

Notes:
[1] As at 30 June 2022
[2] As at 30 June 2022