Announcement

The Partners Group (PG) Global Income Fund (the 'Trust', 'PG GIF') is a listed investment trust (LIT) providing investors with access to a segment of the global direct loan market (ASX code: PGG). Stricter regulatory capital requirements for banks has led to rapid growth in the US$1.2 trillion private debt market whilst exhibiting a low correlation to traditional fixed income instruments.

The PG GIF offers an investment opportunity and exposure to a market that has previously been inaccessible in Australia for retail investors. Specialist expertise is required to operate in this market and the global PG private debt team comprises highly skilled and experienced lending specialists. The team consists of over 50 investment professionals supported by a global network of over 1,200 employees, operating in 20 offices and managing $118 billion in assets globally, with $25 billion within private debt strategies.

The trust will initially implement leverage of up to 50% of the Gross Asset Value (GAV) of the Senior Secured Loan strategy during the initial ramp up phase with the intention of progressively reducing this figure as the allocation to the higher yielding strategies increases. All foreign currency exposure will be hedged into AUD.

The objective of the Trust it to provide Unitholders with a consistent and stable monthly income of RBA Cash Rate +4% from a diversified, global portfolio of private loans with a focus on capital preservation. PG expects to raise a minimum of $200 million ($500 million maximum) from the PG GIT initial public offering, with the ability to accept further applications by way of Oversubscriptions under the Offer of a further $50 million at the discretion of the RE. Management costs associated with the LIT are 1% plus expenses and performance fees of 10% over a hurdle of RBA Cash Rate +6% for the special situations strategy (if the LIT exceeds RBA +4%), capped at 0.25% p.a across a rolling three year period.

Please note that the attached Product Disclosure Statement (PDS) was lodged with ASIC on 29 July 2019.  BondAdviser reserves the right to vary or withdraw our research opinion should material changes arise during the lodgement period.

Summary details of the transaction are listed in the table below:
 

* Issue size to be determined under the Offer..

** We classify PGG within the GICS Sector "Investment Companies", but note that the ASX is likely to assign it a "Not Applicable" classification.

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