Pengana Capital Group (PCG) H2 2024 earnings summary

Executive summary

• Diversified Australian fund manager with $3.4bn FUM as of July 2024, offering both listed and private market strategies to non-institutional investors.

• Strong brand with over 20 years in the market, serving >50,000 investors and >3,000 financial advisors.

• Strategic repositioning towards private markets, especially Global Private Credit and Private Equity, aiming for these to become the dominant business segment.

Financial highlights

• FY2024 management fees were $35.9m, nearly flat year-over-year; performance fees dropped sharply to $3.1m from $32.7m in FY2023.

• Operating EBITDA for FY2024 was $3.1m, down from $3.7m in FY2023 and $31.8m in FY2022, reflecting lower performance fees and higher expenses.

• Underlying profit before tax was $2.4m, with basic EPS on underlying profit after tax at 1.63 cps, down from 4.11 cps in FY2023.

• Statutory profit after tax was a loss of $4.3m, or (5.22) cps, compared to a loss of $0.5m, or (0.59) cps, in FY2023.

Outlook and guidance

• Focus on expanding private market strategies, particularly Global Private Credit, leveraging a strategic alliance with Mercer.

• TermPlus direct-to-consumer platform expected to be a key profit driver, scalable via digital infrastructure.

• Growth prospects in high-demand segments, with capacity to add new strategies and vehicles.