Pengana Capital Group will launch a number of global private credit funds, following a joint venture with major shareholder Washington H. Soul Pattinson (WHSP).
WHSP has provided $200 million of seed funding to establish a portfolio of global private credit investments and Pengana has been building the portfolio over the past year.
"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," Pengana chief executive officer, Russel Pillemer said.
Through the arrangement and the investment vehicles, Pengana hopes to provide institutional-grade global private credit to non-institutional investors.
"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," Pillemer said.
"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," chief executive officer of WHSP, Todd Barlow, added.