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.”

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

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Nehemiah Richardson, a highly-regarded and experienced financial services executive, has been appointed Managing Director and CEO of Pengana Credit. Mr. Richardson has significant experience advising large financial institutions including Merrill Lynch and JPMorgan, as well as running commercial banking and strategic business units at National Australia Bank and Latitude Financial Services.

Richardson is joined by Charles Finkelstein, an experienced banker and the former Treasurer of Citi Australia, who has been appointed Chief Investment Officer (CIO) of Pengana Credit. Charles is tasked with oversight and management of Pengana Credit’s private credit manager portfolio, which recently announced a hefty $200m investment from partners Washington H Soul Pattinson (“WHSP”), and is intended to fuel Pengana Credit’s product offerings, creating exciting opportunities for Australian investors.

Mr Finkelstein has spent the past 33 years with Citigroup, with the last 17 years at the helm as Managing Director and Country Treasurer for Citi Australia, and Head of G10Markets Treasury Asia Pacific.

Both appointments have been hailed as a major coup for Pengana Credit by Russel Pillemer, CEO of Pengana Capital Group. “We are delighted to have Nehemiah and Charles on board. They have established themselves as outstanding operators in banking and financial services, and their appointments speak volumes about the immense potential and scale of the opportunities in global private credit.

“When combined with the previous commitment from our joint venture partners, Soul Patts, we’re incredibly excited to have brought this calibre of talent together.

“Both Nehemiah and Charles have considerable private credit market expertise and are well-placed to drive Pengana Credit as a significant distributor and manager of best-of-breed global private credit opportunities.”

Nehemiah Richardson, MD and CEO of Pengana Credit, said: “Pengana and Soul Patts have assembled a compelling and unprecedented platform for global private credit investment, and I’m delighted to be involved in this opportunity. We’ve seen private credit explode as an asset class, and I see huge scope for Pengana as a major player in this space.”

Charles Finkelstein, CIO of Pengana Credit, echoed Richardson’s sentiment. “It’s one of the most exciting initiatives I have been a part of. These are great operators with a track record of innovation, and unlocking previously inaccessible global investments for Australian investors. Global private credit continues to grow and offers some outstanding diversified investment opportunities, and we are going to give Australian investors a unique chance to participate in this thriving sector.”

Demand for Pengana Credit investments has already been strong, according to Pengana Capital Group Executive Director Dean Weinbren, who leads Pengana’s go to market strategies: “Pengana Credit already has noteworthy demand from close investors who are eager to access the new private credit products. Currently those investors are on a waiting list for first access, which is targeted to begin rollout in the next few months.”

Pengana recently announced a $200m seed investment from Washington H. Soul Pattinson as part of a joint venture to launch global private credit investment offerings for advised and direct retail investors, high-net-worth and family offices.

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