Pengana Capital Group reported a strong turnaround in FY 2025 profitability, driven by a surge in private credit funds under management and successful new product launches. The firm’s strategic shift towards private markets is reshaping its revenue profile and balance sheet strength.
- Gross revenues rose 45% to $56.5 million in FY 2025
- Performance fees jumped fivefold to $16 million
- Operating EBITDA swung to a $9.9 million profit from a prior loss
- Global private credit FUM grew 64%, reaching $1 billion
- Declared a fully franked final dividend of 2 cents per share
Strong Financial Turnaround
Pengana Capital Group has delivered a marked improvement in profitability for the year ended 30 June 2025, posting gross revenues of $56.5 million, up from $39 million the previous year. This growth was underpinned by a dramatic increase in performance fees, which soared to $16 million from just $3.1 million in FY 2024. After payments to teams and joint ventures, net performance fees rose to $7.9 million, reflecting the firm’s ability to capture more value from its investment successes.
Operating EBITDA turned positive at $9.9 million, a significant turnaround from a $1.4 million loss in the prior year, despite increased expenses related to new product launches. This profitability improvement signals Pengana’s effective cost management alongside revenue growth.
Strategic Shift to Private Markets
A key driver of Pengana’s growth has been its strategic repositioning towards private markets, particularly global private credit. Funds under management (FUM) in this segment surged 64%, reaching $1 billion in 2025, up from just $0.2 billion in 2019. This shift has not only expanded the firm’s asset base but also improved margins, as private market assets typically command higher fees and better terms for Pengana.
The company also launched Australia’s first global private credit separately managed account (SMA) product and introduced the TermPlus product to the retail market, broadening its product suite and investor appeal. The IPO of PCX, the first ASX-listed investment company focused on global private credit, raised $157 million and has traded mostly at a premium to net asset value, reflecting strong market interest.
Robust Investment Performance and Product Innovation
Pengana’s funds delivered strong investment returns, with the Pengana High Conviction Trust standing out as the best performing Australian retail equity fund, returning 109% in calendar year 2024 and 39% in FY 2025. This performance has reinforced the firm’s brand and attracted new investors.
The company’s innovative quarterly buyback program for PCX has become a market standard, enhancing liquidity and investor confidence. Meanwhile, listed equity funds have remained stable with $2.6 billion in FUM, supported by solid long-term returns and opportunities for further growth.
Balance Sheet and Dividend
Pengana’s balance sheet has strengthened significantly, with cash balances increasing and net tangible assets per share rising. The repayment of a CEO staff loan contributed $11 million in cash inflow, further bolstering financial health. Reflecting confidence in ongoing profitability, the company declared a fully franked final dividend of 2 cents per share.
Outlook
Looking ahead, Pengana expects continued rapid growth in global private credit and sees multiple fundraising opportunities across investor segments. The firm’s expanding product range and strong track record position it well to capture further market share. Opportunities also exist to grow FUM in select listed equity funds, driven by sustained performance.
Bottom Line?
Pengana’s pivot to private credit and innovative products is reshaping its growth trajectory, but sustaining performance fees will be key to maintaining momentum.
Questions in the middle?
- Will Pengana sustain its elevated performance fees amid market volatility?
- How will the new private credit products impact long-term fee margins?
- What is the potential for further FUM growth in listed equity funds?