Benefits of investing in PE1

• Performance. Private equity has outperformed public market equivalents across multiple time horizons, geographic regions and market conditions.

• Diversification. Private equity investments have historically tended to exhibit somewhat lower correlation with traditional stock and bond markets.

• Market cycle resilience. Historical performance of private equity has been resilient across various market environments.

• Income. Pengana intends to target a cash distribution yield equal to 4%p.a.

• Simple to invest. A single point of entry to a well-diversified portfolio of private equity investments in accordance with the long-term target guidelines for the portfolio.

• Access. The Trust will seek to provide investors with exposure to oversubscribed or difficult-to-access middle market managers globally.

• Liquidity. The structure of the listed Trust allows small and large investors to gain exposure to private equity with the flexibility to buy and sell units on the ASX so long as an active market exists.

• Investment management. The Trust's listed structure allows Pengana to deliver an investment management capability typically accessed by institutional clients.

• Experienced Investment Manager. The Trust's investments are sourced and due diligence conducted by Grosvenor Capital Management, L.P. ("GCM"). GCM possesses a track record in private markets investing dating back to 1999. GCM and its affiliates have over US$24 billion in private equity, real estate and infrastructure assets under management.

• Alignment shares. A 5% uplift in net asset value on the allotment date is expected to be created by the issue of PCG shares equal to 5% of the total amount raised under the Offer into the Trust for nominal consideration.

About the Fund

The Pengana Private Equity Trust (ASX: PE1) gives investors the opportunity to access a diversified portfolio of global private market investments, with a select allocation to private credit and opportunistic investments. The Trust has traded on the ASX since April 2019.

The Trust is managed by Grosvenor Capital Management L.P, one of the largest and longest continually operating allocators to alternative investments in the world. GCM and its affiliates ('GCM Group') have more than US$24 billion of AUM across its private market platform. The GCM Group has in excess of 500 investment manager relationships in private markets with commitments in over 800 underlying funds and over 200 co-investment opportunities since 1999.

Investment strategy

The Trust will seek to generate, over an investment horizon of at least 10 years, attractive returns and capital growth through a selective and diversified approach to private markets investments, including private equity, private credit, and other opportunistic investments.

GCM manages the customised investment strategy for the Trust that seeks to provide diversification across underlying investment managers, vintages, geographies, sectors and strategies. They invest with underlying managers who have historically generated upper quartile returns, and who GCM believes have the potential to continue to do so.

How we invest your money

The Trust seeks to provide investors with a diversified set of exposures to private markets, including private equity, private credit, and other opportunistic investments.

In executing the Investment Strategy and seeking to achieve the Trust's Investment Objective, GCM will construct a customised portfolio consisting of investments in Private Investment Funds made on a Primary basis (i.e., an interest in a newly established Private Investment Fund offered by the operator of the Private Investment Fund) or on a Secondary basis (i.e., an interest in an existing Private Investment Fund purchased from an existing third party investor in the Private Investment Fund), as well as Co-investments and direct investments.

The Trust may invest either directly or indirectly through investments in one or more GCM Funds, or vehicles managed by third-party investment managers.

Consistent with the Trust's stated Investment Strategy and Investment Objective, the Portfolio will seek diversification by strategy, manager, sector, geography and Vintage, primarily in the established markets of North America and Western Europe, with opportunistic exposure to other regions.

Target allocations

• Private equity Co-investments: 15-30%

• Private equity Primaries: 15-30%

• Private equity Secondaries: 15-30%

• Opportunistic: 10-25%

• Private credit: 5-15%

• Cash: 2-10%

The long-term target asset allocation of the Portfolio has been designed by GCM in an effort to meet the objectives of the Trust, including income and capital growth, while simultaneously providing a diversified risk- controlled private equity portfolio. GCM's long-term objective is for more than 70% of the NAV to be invested in private equity and the remainder in opportunistic credit investments and cash.