Sydney, Australia; Baar-Zug, Switzerland; 4 October 2019
Partners Group launches ASX-listed private debt offering at AUD 550 million
Partners Group, the global private markets investment manager, has launched a Listed Investment Trust ("LIT"), Partners Group Global Income Fund ("the Trust"), on the Australian Securities Exchange ("ASX"), raising AUD 550 million. The Trust, which was strongly oversubscribed, offers non-institutional clients the opportunity to gain exposure to global private debt investments, while providing the flexibility to buy and sell units on the ASX. The Trust was listed on the ASX's official list on 26 September 2019 and is trading under ASX code "PGG".
The Trust's investment strategy will be implemented by allocating investments across three private debt strategies: first lien loans, which will comprise the majority of investments; second lien and subordinated loans; and select investments in special situations. The Trust targets a cash distribution of RBA cash rate plus 4% per annum, and intends to pay cash distributions monthly.¹
Partners Group will draw on its long track record of private debt investment to manage the Trust, leveraging a team of over 50 dedicated private debt investment professionals across 20 offices globally. As of 30 June 2019, the team manages a diversified portfolio of global private debt investments totaling approximately USD 20 billion (AUD 29 billion).
Martin Scott, Partner, Head of Australia, Partners Group, states: "We are delighted to announce the successful, oversubscribed launch of an LIT in Australia, bringing a product, which has traditionally only been available to institutional investors, to a retail audience. This is particularly relevant in the current low yield environment as it offers an attractive alternative to traditional fixed income investments. We did not compromise in putting this offering together, maintaining Partners Group's focus on institutional quality and best practice."
André Frei, Partner, Co-Chief Executive Officer, Partners Group, adds: "We see continued interest in private markets from distribution partners and private individuals, which represented 16% of our global client demand in the first half of 2019. These types of investors increasingly recognize the benefits of private markets and aim to mirror the allocations of institutional investors in their own portfolios. Usually, they seek to access private markets through semi-liquid structures, which offer quarterly, limited monthly or even daily liquidity. We have been a notable pioneer in this space and to-date manage more than 20% of our total assets under management in such vehicles."
1 The target cash distributions are an objective target only and may not be achieved. Future returns are not guaranteed and a loss of principal may occur.