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26 July 20204 minute read

DLA Piper advises Pengana Capital Group on AUD93 million equity raise for Pengana Private Equity Trust

DLA Piper has advised funds management group Pengana Capital Group (PCG) on its 1 for 3 pro-rata non-renounceable entitlement offer (Rights Issue) and additional placement (Placement) of units in Pengana Private Equity Trust (ASX: PE1) – a listed investment trust managed by PCG – raising in excess of AUD93 million.

PE1 is currently Australia’s only listed investment trust fund offering investment exposure to institutional quality global private equity.

Pengana decided to conduct the Rights Issue and Placement in response to continued investor demand, and its belief that investments in private equity are well placed to generate strong returns in the aftermath of market dislocations.

The Rights Issue conducted in respect of PE1 is the first entitlement offer conducted for an Australian listed investment company (LIC) or a listed investment trust (LIT) since the COVID-19 outbreak and since the prohibition on the payment of stamping fees by LICs and LITs.

DLA Piper’s team was led by Head of Funds Management Australia, Martin Jamieson, with support from Tax partner Eddie Ahn and solicitor Kelvin Lau. Partner Tracey Cross from DLA Piper’s Auckland office advised on the New Zealand aspects of the Rights Issue.

Martin Jamieson said: 'We are delighted to again assist our longstanding client on this transaction, which allows non-institutional investors to gain a liquid exposure to unique opportunities available in these uncertain and difficult times, and which are traditionally only available to institutional investors.'

Units were issued pursuant to the Rights Issue to existing unitholders of PE1 on 14 July 2020. On 16 July and 24 July, units were issued pursuant to an offer of the shortfall from the Rights Issue and the Placement to wholesale investors. The number of units on issue in PE1 increased by approximately 45% as a result of the Rights Issue and Placement.