Mercer to advise Pengana on private credit

Pengana Capital Group’s private credit arm, Pengana Credit, has selected global investment and research firm, Mercer, to advise on its portfolio construction within the private credit business.

The asset manager said the partnership was another step forward as it continues to develop its private credit capabilities, following a $200 million seed investment from Washington H. Soul Pattinson earlier this year to provide Australian investors access to global private credit investments that were previously unavailable.

Pengana Capital Group chief executive, Russel Pillemer, said the appointment indicates the firm’s commitment to building a dedicated team to provide innovative investment options.

“Our investors will benefit from Mercer’s scale and access to private credit opportunities across the globe,” he said.

“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.

“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.”

With US$16.45 trillion in assets under advisement, Mercer will seek to use its widespread global footprint and 2,000-strong workforce of investment professionals to develop Pengana Credit as a suitable offering for Australian investors.

“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,” Simon Eagleton, Investments Leader for Mercer in the Pacific region, said.

“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.”

The announcement comes after Pengana Credit appointed former JP Morgan and Merrill Lynch executive, Nehemiah Richardson, as Chief Executive Officer and former Citi Australia Treasurer, Charles Finkelstein, as Chief Investment Officer.

“[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,” Richardson said.

“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.”