Hunting for double-digit returns with lower levels of risk

Pengana Capital CEO Russel Pillemer believes private equity offers a phenomenal opportunity for investors, in terms of reward for risk.
James Marlay

Livewire Markets

The private equity (PE) space has grown dramatically in recent years, in both scale and access. Despite this growth, only one diversified PE investment is available on the ASX: the Pengana Private Equity Trust, trading under the ticker PE1. 

Private equity is a broad asset class with many different investment strategies, including venture capital, growth, buyouts and distressed opportunities. Traditionally, PE was only available to high-net-worth investors and large family offices, but PE1 solves many of the problems associated with PE - namely access and liquidity. 

The other issue? Expertise. It's one thing to have access to an opportunity. It's another to have the requisite knowledge to play in the space. According to Pengana Capital co-founder and CEO Russel Pillemer, PE1 offers that.

Russel Pillemer, Pengana Capital
Russel Pillemer, Pengana Capital

He adds that while PE1 has in excess of 450 underlying exposures, getting "into the right private equity managers, on the lookout for good companies with high cash flows" is the key. 

Such diversification and expertise "should be able to earn mid-teens type of returns over time - significantly more than you could earn in listed equity markets," says Pillemer.

While Pillemer is keen to point out that Pengana focuses on companies that are stable and consistent, rather than particularly exciting, he nominates Elon Musk's SpaceX as one investment that stands out from the pack. 

In the following Fund in Focus, Pillemer shares more about the philosophy behind PE1, where he sees the best opportunities currently, why a long-term focus is important, and why private markets offer a more compelling opportunity than public markets. 

  • Name: Pengana Private Equity Trust (ASX: PE1)
  • Asset Class: Alternative Assets
  • Investment objective: The Pengana Private Equity Trust is Australia’s only listed portfolio of diversified global private market investments, managed by Grosvenor Capital Management L.P, one of the largest and longest continually operating allocators to alternative investments globally. 
  • Link to fund page: click here

Please note that this interview was filmed on 26 March 2024.


0:00 - Intro
0:16 - Why list on the ASX
1:12 - The philosophy behind PE1
2:04 - Where are the best PE opportunities
3:17 - A matter of liquidity
5:07 - Private vs public markets
6:53 - Target investors and time horizons
8:05 - PE into the future

Access to Australia's only Global Private Equity stock

The Pengana Private Equity Trust (ASX: PE1) is a diversified portfolio of global private equity investments, managed by one of the largest and longest continually operating allocators to alternative investments in the world. Visit their website to learn more. 

Pengana Private Equity Trust (PE1)
Alternative Assets
Livewire gives readers access to information and educational content provided by financial services professionals and companies ("Livewire Contributors"). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision, please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.

1 topic

1 stock mentioned

1 fund mentioned

James Marlay
Co Founder
Livewire Markets

Livewire is Australia’s #1 website for expert investment analysis. We work with leading investment professionals to deliver curated content that helps investors make confident and informed decisions. Safe investing and thanks for reading Livewire.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment