Transcription of The Stock Network Interview with Pengana Private Equity Trust (ASX:PE1), Investment Specialist, William Dougall
Lel Smits: Pengana Private Equity Trust offers investors access to global private equity and private credit through a listed ASX structure. PE1 targets diversified institutional quality investments across healthcare, hospitality and global growth sectors. I’m joined today by William Duggal, investment specialist at Pengana Capital Group, to discuss recent portfolio additions and how PE1 balances long-term opportunities with short-term currency impacts.
Will, welcome to the Stock Network.
William Dougall: Awesome. Thanks for having me on, Lel.
Lel Smits: Now, last year was a huge year for private markets with US deal value exceeding $1 trillion for the second time in the private equity sector history. What are you seeing out of there now? And also, how is it shaping the way that you’re positioning PE1?
William Dougall: Yeah, absolutely. Great question.
So, 2025 was a real turning point. So, after a couple of slower years, exits came roaring back and credit markets reopened and deal value crossed that $1 trillion only for the second time ever, which you just touched on. And the catalyst was really the lower borrowing costs and a bit more clarity on the macro picture.
And so, what we’re seeing now is a market that’s active but also disciplined. So, sellers and buyers are starting to agree on price again, which is what you need for deals to get done. And for PE1, that’s playing out in two ways.
So, our existing companies are starting to be sold, which brings cash back to investors. And we’re also seeing good opportunities to invest in new ones as well. So, particularly in the middle market and in businesses where families or founders are looking to partner.
Lel Smits: Great. And in terms of performance and portfolio quality, what’s been working well in the PE1 portfolio over the last 12 months? And how does that compare to what listed markets have delivered?
William Dougall: Yeah, interesting question. So, the standout has been our co-investment slave.
And that’s where we invest directly into companies alongside the private equity managers we back. And that part of the portfolio is about 70% of what we own. And it’s added about 10% to PE1’s value over the past 12 months.
So, a good example is the Kroll Bond Rating Agency. We sold that one earlier this year almost four times what we paid for it. And when you lift the hood on the underlying companies in the PE1 portfolio and looking specifically at their fundamentals, the EBITDA has actually grown 18.1% on average per annum.
And the revenue has grown 21.9% per annum over the five years to 31 December 2025. And that’s well above the 6% to 11% delivered by the MSCI, All Country Loan Index and another proxy, Russell, for 8,000 constituents over that same period. And so, obviously, listed markets have had a strong year last year, but it’s not what we get with the private equity exposure.
It’s intended to be getting exposure to businesses that are being actively improved, not just owned. And over time, that’s what tends to compound into stronger returns. Yes.
Lel Smits: And Will, what are some of the standout companies in PE1’s top 10? Also, is there one maybe that doesn’t get much attention but probably should?
William Dougall: Yeah. So, the one everyone wants to talk about is SpaceX, obviously. It’s our biggest holding, 13.9% of the portfolio and valued at its most recent mark of $800 billion.
So, hopefully, some further upside to be expected, particularly with that mid-June target listing at a valuation of $1.75 to $2 trillion, reportedly, and that could make it the largest IPO in history. But the one I’d point to is Osaic. It’s our second-largest holding, and most people have never heard of it.
So, it’s a US business that provides the technology, the compliance and back-office infrastructure that financial advisors rely on to run their practices. It’s a quiet, profitable business in a growing industry, and it’s up about 21% over the past year. And a recent transaction has actually already returned more than twice what we put in.
So, that’s the type of company PE1 was built to give investors access to, not just the famous names, but the ones that are doing the quiet compounding.
Lel Smits: Absolutely. Well, appreciate the update from Pengana Capital Group, and look forward to seeing the developments as they come through.
William Dougall: Thanks for having me on.
Ends