Russel Pillemer

Pengana Capital Group has announced it is planning to raise up to $350 million for its market-first AI listed investment trust, to be called AIX, which will aim to invest in the world’s largest and most influential private AI companies.

Pengana announced that it has achieved its minimum subscription following a successful cornerstone offer, which was upsized to $150 million from an initial $100 million target, following strong demand.

The AIX PDS has been lodged today, and the offer will be open from 10 June to 19 June 2026, ahead of an expected listing in early July.

AIX will operate as an innovative self-liquidating ASX listed trust structure, with investments managed by US-based GCM Grosvenor, a global alternative asset manager with more than US$91 billion in assets under management. Grosvenor also manages investments for the Pengana Private Equity Trust (ASX: PE1), one of few ways Australian investors can access SpaceX pre-IPO.

The self-liquidating AIX will target a seven-year lifespan: following an initial two-year period where any gains will be released to investors, and capital reinvested, both capital and gains will be returned to investors from year 2, as underlying investments are realised through IPO, secondary sale or acquisition. If the Trust continues beyond a seven-year lifespan the management fee will reduce to zero, aligning management with the Trust’s expected life.

Russel Pillemer, CEO of Pengana Capital Group, said Pengana’s relationship with Grosvenor can open doors to some of the most sought after private AI companies globally. “We are delighted to be partnering with Grosvenor, who is the ideal manager to help us capture some of the vast wealth creation happening while these AI companies are still private.

“Many compelling AI and AI-related businesses remain private during their highest growth phases. By the time these companies reach public markets, a significant portion of their return potential may already have been captured by private investors. Investing in unlisted securities can provide earlier participation in that value creation.

“AIX will allow Australian investors to access these AI companies, seeking to deliver long-term capital growth by targeting investments in non-publicly traded companies that are developing, enabling, or contributing to the adoption of artificial intelligence and related technologies”, Pillemer said.

Some of the companies in AIX’s sights include Anthropic and OpenAI, which are both progressing with IPO plans. AIX also announced it has already contracted investments with ByteDance and Handshake.

Other target companies named by AIX include Shield AI, Waymo, Lambda, Crusoe, Databricks, and Perplexity.

The potential for explosive private market growth has been demonstrated by SpaceX, which has grown from a US$50 billion valuation in 2020 to the world’s largest private company, with expectations of a valuation around US$1.75 trillion for its impending IPO. SpaceX has been held by Pengana’s PE1 vehicle since 2020.

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Russel Pillemer

The $322 million Listed Investment Company, Pengana International Equities Limited (ASX: PIA), confirmed it has snared one of the highest performing global equities managers in the Australian market, Antipodes, to manage its global investment portfolio.

In an announcement to the ASX, PIA said it would appoint Antipodes Partners Limited (Antipodes) as “…sub‑investment manager of the Company’s global equities portfolio, under the existing investment management framework.

“The appointment would also involve a transition of the Company’s investment strategy to Antipodes’ differentiated global SMID (Small to Medium Cap) equities strategy, which the Board believes is well suited to the Company’s next phase.”

Performance has been particularly strong for the Antipodes Global SMID strategy, having delivered 32.6% per annum after fees for the year to 30 April 2026, and 27.1% per annum net of fees since inception in November 2022 to 30 April 2026.

Russel Pillemer, CEO at Pengana Capital Group, described the Antipodes agreement as a coup for investors in PIA. “Pengana is delighted that the PIA board has endorsed the appointment of Antipodes as manager, and we are very excited to have landed a manager of this calibre.

“Antipodes has some of the best performance in the market, and was a standout among potential managers to take over this portfolio.

“We see this appointment as creating an exciting new phase for a revitalised PIA”, Pillemer said.

PIA also announced an integrated capital management proposal “…designed to give all shareholders genuine choice, transparent liquidity and a clear path forward”, and reduce the current discount to NTA.

The proposal includes an equal-access off-market buyback allowing shareholders to exit at after-tax NTA less transaction costs, a fully franked special dividend, and potential recapitalisation for investors who remain.

Once the capital management process is completed, PIA will transition to Antipodes, positioning the company for stronger performance.

The update also said: “Quarterly dividends will continue and, following a stabilisation period, the Board intends to consider ongoing discount to NTA management mechanisms including a rolling quarterly Buy-back (within applicable regulatory limits and subject to solvency and Board discretion), providing continuing shareholders with an ongoing, transparent opportunity to realise value at or around NTA over time.”

The proposals will be subject to shareholder approval at an extraordinary general meeting which is expected sometime during July 2026.

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Russel Pillemer

Pengana Capital Group has agreed with US-based global private equity specialist, GCM Grosvenor, to launch an IPO for an innovative self-liquidating ASX listed trust structure that will invest in unlisted Artificial Intelligence (AI) companies. The Trust will give Australian investors an opportunity to invest in some of the world’s best AI companies across the entire AI-ecosystem, before they go public.

More details on the IPO, which will only be open to Wholesale and Advised investors before the fund lists on the ASX, will be available in the coming weeks, with an offer expecting to take place in the near future.

Pengana, together with GCM, has a credentialed track record of innovating in niche, hard-to replicate investment strategies, for example the Pengana Private Equity Trust (ASX: PE1), which is also managed with GCM Grosvenor, and already holds some leading global AI companies including SpaceX, Open AI, Anthropic and Groq.

Russel Pillemer, CEO of Pengana Capital Group, said the AI theme demands its own dedicated vehicle. “These AI companies are set to become some of the world’s largest, most influential companies, but they are staying in private hands for longer, which means most investors have no way to invest in them, leaving investors structurally underexposed to one of the fastest growing sectors in history.

“Over the last few years, vast amounts of wealth has been created for those investors who have been able to invest in many of these private (unlisted) AI companies. Unfortunately, most Australian investors have generally not had this opportunity due to the inaccessibility of these exposures. AIX is a game changer, which, once listed, will allow all Australian investors to now invest in what has previously been unavailable.

“On top of this, research shows that the most explosive growth is happening in the years before these privately held companies list.

“There is a great opportunity to invest in these specialist AI companies while they are still private, where investors can capture more of this growth before they list on the public markets.”

The most dramatic example of explosive private equity growth in recent years is SpaceX, which has grown from a US$50 billion valuation in 2020 to the world’s largest private company, with expectations of a valuation over US$1.5 trillion for its impending IPO – SpaceX has been held by Pengana’s PE1 vehicle since 2020.

Speaking to the underexposure Australians have to the AI sector, Pillemer notes “This underexposure creates both a missed opportunity and a material portfolio risk, as AI disruption impacts existing holdings across all sectors.

“AI is the fastest moving disruption the world has seen. Entire economies will be changed forever, and investors need ways to access this emerging phenomenon”, Mr Pillemer said.

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Michael Maughan

Pengana Capital Group has added senior Australian equities investment expertise to its ranks, with the appointment of Michael Maughan as a Senior Portfolio Manager within the Pengana Australian Equities team.

Michael Maughan previously held a long-term position as a Portfolio Manager at Tyndall Asset Management, and brings over 25-years of experience in equities research and portfolio management.

Russel Pillemer, CEO of Pengana Capital Group, said Michael is highly regarded and will be a huge asset to Pengana’s Australian equities team. “Michael is well-known for his disciplined investment approach, deep company insights, and consistent delivery of income and growth outcomes for clients.

“Michael will operate as a peer alongside our existing senior team members, contributing to the collaborative culture that defines Pengana’s investment philosophy”, Pillemer said.

Rhett Kessler, CIO and Senior Fund Manager for the Pengana Australian Equities Fund added: “Michael brings expertise across technology, media, telecoms, transport and property, which complements the team’s existing strengths and expands our research depth.

“We also value Michael’s disciplined focus on fundamental cash flow analysis, his strong senior corporate relationships, and his clarity in communication with both clients and stakeholders.”

Michael said he feels a natural affinity with Pengana’s approach. “I’m thrilled to be joining Pengana’s Australian equities team. I’ve always admired Rhett Kessler and Anton du Preez and the team for their integrity and skill as investors, operators, and communicators.

“While we all bring varied experiences and skills, we share the same philosophy and have a genuine commitment to growing clients’ wealth steadily and responsibly”, Maughan said.

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Russel Pillemer

The $374 million Listed Investment Company, Pengana International Equities Fund (ASX: PIA), has announced a proposal to boost shareholders’ income returns via a new structured global private credit exposure targeting a 56% increase to PIA’s fully franked dividends.

Dividends will also be paid monthly rather than quarterly under the proposal, which the board is pleased to put to PIA shareholders for their consideration at PIA’s Annual General Meeting on 10 October 2025.

Pengana said the proposed changes are unprecedented, and would deliver additional predictable income to enhance PIA’s earnings-per-share. Pengana forecasts fully franked dividends would increase to a targeted 8.4c per share, equal to total dividend yield of 8.9% (when accounting for franking credits) at the 31 July share price.

Once fully implemented PIA’s assets will comprise the current portfolio of listed global equities (~70%) and a diversified allocation to highly rated global private credit (~30%). The global private credit portfolio managed by Pengana Credit (who appointed Mercer as its investment consultant) will allocate to a well-diversified portfolio of US and European private credit managers, with long term track records, and total exposure to more than 3,500 underlying mid-market corporate loans.

PIA’s allocation to global private credit will be funded by a relatively low-cost secured revolving debt facility over the global equity portfolio. Pengana Capital Group will cover the shortfall, should the returns from the global credit portfolio be insufficient to meet the cost of the debt facility..

Russel Pillemer, CEO at Pengana Capital Group, said combining global equities with global private credit was a first for the LIC sector and provides investors a high-quality hybrid-like income alternative. “This could be considered a new type of hybrid, which takes the opportunity to enhance fully franked dividend returns with global private credit.

“Equities and global private credit can complement each other perfectly, with global private credit adding an important unlisted investment component to the offering, which allows us to boost the income returns available to PIA shareholders.

“The yield from global private credit is uncorrelated to any changes in local interest rates, which is also attractive to investors seeking stability in yield, and even more so in a reducing interest rate environment.

“We can offer this advantage due to the closed-end nature of the LIC structure, which enables efficient investments into illiquid asset classes such as global private credit”, Mr Pillemer said.

Mr Pillemer said PIA’s income improvements help address a growing structural requirement for defensive income producing investments among Australian investors. “More Australians are exiting accumulation and entering transition-to-retirement, and need investments with strong capital preservation characteristics.

“There is also a growing need for hybrid investors to find a reliable and meaningful replacement for their investments.

“Many traditional Australian dividend and income sources are exposed to similar economic forces. This lack of diversification means they can all fall in value at the same time.

“PIA plans to address these issues via global private credit, which is defensive in nature and provides a significant boost to income returns, that can also be reinvested for compounding benefits”, Pillemer said.

In summary:

• PIA will add a structured global private credit exposure, targeting a fully franked dividend increase of 56 per cent for shareholders.
• The enhanced return will allow PIA to target a gross yield (including franking credits) of 8.9% based on the 31 July 2025 share price of $1.255, or 8.0% based on 31 July 2025 post-tax NAV.
• PIA will deliver more consistent cash flow for investors, shifting to monthly dividend payments.
• PIA will fund its global private credit allocation via a relatively low-cost secured revolving debt facility. Pengana Capital Group covers the shortfall, should the returns from the global credit portfolio be insufficient to meet the cost of the debt facility.

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Nehemiah Richardson

Pengana Capital Group has opened its first diversified global private credit investment fund for Australian wholesale and sophisticated investors. The Pengana Diversified Private Credit Fund is a significant early step toward a broader offering from the group, that aims to offer Australian investors greater access to a burgeoning asset class that has been largely out of reach.

The Pengana Diversified Private Credit Fund is open to wholesale and sophisticated investors, with several additional offerings for retail investors to follow.

This offering follows Pengana’s joint venture with its major shareholder Washington H. Soul Pattinson, which made a $200 million investment to seed the global private credit portfolio earlier this year. The $200 million is now fully committed. “This was an important piece in solving the challenges of bringing a truly diversified global private credit offering to market”, notes Pengana Capital Group CEO Russel Pillemer. “In order to offer our investors a truly global private credit return experience from day one, this initial investment allowed us to build out the foundations of a portfolio that we can bring to market.”

Pengana later announced the appointment of Mercer as investment advisor for its private credit suite, and has been working closely with Mercer’s global team to secure capacity with some of the most highly sought after global private credit opportunities.

Nehemiah Richardson, CEO of Pengana Credit, said the fund would provide access to quality private credit vehicles that are difficult to access for most non-institutional Australian investors. “Our alliance with Mercer provides extensive global reach and the ability to target some of the best private credit managers.

“Access to global private credit is a huge issue for Australian investors, both wholesale and retail, who face significant obstacles to invest. We are pleased to bring a solution to market that unlocks the opportunity for wholesale investors, and are excited about launching some compelling retail offerings in the near future.”

Mr Richardson said the wholesale Fund would target a total net return equivalent to the RBA cash rate plus 8%. Investors in the wholesale fund will need to commit to a minimum three-year lock-up period, and will receive annual distributions.

The portfolio is highly diversified and specifically designed to deliver low volatility and attractive risk-adjusted returns. “Risk is spread across an actively managed multi-manager, multi-asset portfolio. Portfolio construction is key to ensuring low correlation across investments and high risk-adjusted returns.

“The big differentiator is diversified access to some of the best global private credit managers. Building a diversified private credit portfolio has proven to be very difficult for all but the largest institutional investors. We have also worked hard to ensure we were able to solve the puzzle of hedging the portfolio of global private credit investments in order to deliver asset-class returns in AUD.”

Growth in global private credit has been strong for the last 15 years, according to Mr Richardson. “Private credit has grown rapidly as global banks have retreated from corporate lending due to increasingly stringent regulatory requirements, providing one of the most compelling risk/return investments. Constructing a highly diversified portfolio of top-quality private credit managers is key.

“Private credit has low correlation with other asset classes, and is also attractive due to its resilience to higher interest rates and inflation. This is largely due to the fact most securities have a floating rate.”

The Pengana Diversified Private Credit Fund has opened to investors who have been on the group’s waiting list, with a broader availability to follow in the coming weeks.

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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

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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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Russel Pillemer

Australian diversified fund manager, Pengana Capital Group (ASX: PCG or Pengana), has announced a joint venture with major shareholder Washington H. Soul Pattinson (ASX: SOL or WHSP) to offer Australian investors unprecedented access to global private credit investments.

As part of the arrangement, WHSP has provided $200 million of seed funding to establish a highly diversified portfolio of best-of-breed global private credit investments. Pengana has been building the portfolio over the past year, with the seed capital close to fully allocated.

In the coming months, investors will be given the opportunity to invest alongside WHSP, with the launch of several vehicles, each specifically tailored to different market segments, including advised and direct retail investors, high-net-worth and family offices.

Global private credit has grown rapidly in recent years as institutional investors have sought yield and diversification beyond traditional fixed income and public equity markets. Pengana has a history of ‘democratising’ institutional-grade opportunities for non-institutional investors – having launched Australia’s first and only listed global private equity vehicle, Pengana Private Equity Trust (ASX: PE1) in 2019, providing retail investors access to ‘top tier’ global private equity investments. Pengana now continues this mission, aiming to be the market-leader in providing institutional-grade global private credit to non-institutional investors through the joint venture.

Russel Pillemer, CEO of Pengana Capital Group, said that while opportunities in global private credit have been growing at a rapid pace since 2008, there is a severe lack of exposure to global private credit investment options in Australia. “Many every-day investors aren’t even aware of the size of this opportunity, purely because they have never had this level of access before.

“Investing in global private credit offers several significant benefits for portfolio construction, including diversification, higher yields, and lower volatility. By adding global private credit to portfolios, investors can achieve greater balance and potentially improve their risk-adjusted returns. But in Australia there is an absence of vehicles which are appropriately structured for Australian retail and mass high-net-worth investors.

“We are delighted to have partnered with an investor the calibre of Soul Patts who have provided seed funding to enable the construction of the initial portfolio ahead of Pengana bringing this opportunity to market.”

Todd Barlow, CEO of WHSP said: “We are excited to partner with Pengana to provide Australian investors with a differentiated opportunity to invest in top-tier global private credit. We are highly impressed by the portfolio’s investment strategy, the access to investments and expertise. On this basis we have made a substantial capital investment to seed the portfolio.”

Pillemer also noted that Pengana is currently assessing an opportunity to launch a direct-to-consumer retail offering later in the year, offering a solution for Australians to earn an income on their savings.

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Fraser Herd

Pengana Capital Group has added to its distribution team, appointing experienced investment banking professional Fraser Herd as new Distribution Manager for the NSW region.

Prior to joining Pengana Capital, Mr Herd was Managing Director of Employed Advice at AMP. He has previously held roles as a Director of Private Banking at Credit Suisse, a Director of Private Wealth at Westpac, and as Associate Director at Macquarie Funds Group.

At Pengana he will work closely with high net worth advisory firms and private banks.

Russel Pillemer, CEO of Pengana Capital Group, said “Fraser brings impressive credentials and a strong network to our distribution team.

“There are many advisers to high-net-worth, sophisticated investors looking for quality, niche investment solutions to add to their clients’ portfolios.

“They want something different from the run-of-the-mill, and Pengana has a track record of innovating and bringing unique investment opportunities in areas such as ESG and private equity.”

Mr Pillemer said Mr Herd will also connect advisers with Pengana’s newly launched capital markets division, Pengana Capital Markets. “Fraser will provide an important contact point for those advisers looking for bespoke investment opportunities in the private markets for their high-net-worth investors.”

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