PENGANA PRIVATE EQUITY TRUST — Net Asset Value 2019

Nov 13, 2019

POSITIVE INVESTMENT RETURNS OFFSET BY CURRENCY MOVEMENTS

OCTOBER 2019

NAV PER UNIT1

1 MONTH PERFORMANCE2 SINCE INCEPTION PERFORMANCE2,3

TARGET DIVIDEND YIELD4

$1.3693 -1.6% 9.5% 4%

COMMENTARY

For the seventh consecutive month since inception, the private market investment portfolio has generated positive returns.

The October private market investment return of +0.3% was offset by the rising AUD versus USD currency movement which contributed -2%. The overall net return of the Trust was -1.6% over October.

The Trust continues to add high quality investment opportunities. One example of this is a very notable commitment of US$2 million to The Veritas Capital Fund VII, L.P.which is currently our largest private equity primary fund commitment.

PE1 Allocations by Investment Type

Breakdown of PE Commitments (A$)

Unfunded Funded

Values may not sum to 100% due to rounding.

INVESTMENT ACTIVITY – SELECTED HIGHLIGHTS5

PRIMARY FUND INVESTMENTS

On October 10th, PE1 made an additional commitment of US$2 million to The Veritas Capital Fund VII, L.P. (Veritas VII), bringing PE1's total commitment to Veritas VII to US$7 million.

OPPORTUNISTIC INVESTMENTS

GCM Grosvenor Multi-Asset Class Fund II (MAC II) currently has a number of private equity investment opportunities in various stages of due diligence, including several secondary transactions. One of the secondary transactions previously completed by MAC II was a secondary investment in two funds that invest across the oil & gas, mining, and power sectors: Denham Commodity Partners V, L.P., a 2008 vintage fund, and Denham Commodity Partners VI, L.P., a 2011 vintage fund.

MAC II purchased the interests in Denham V and VI at an aggregate discount to NAV of 14.5%. We were able to leverage our relationship with the manager of the funds to discuss the outlook for each asset with the manager's deal teams in order to enable us to granularly determine the appropriate discount to bid for the portfolio. At the time of the acquisition earlier this year, the funds' portfolio of 20 investments was well diversified by both geography and sector (with no investment comprising more than 16% of the NAV of the transaction) and we believe there is potential upside within the portfolio that could help drive returns.

CO-INVESTMENTS

GCM Grosvenor Co-Investment Opportunities Fund II (GCF II) continues to perform due diligence on a number of potential co-investment opportunities and expects to close on at least one more co-investment prior to year-end. The portfolio is already well diversified, with exposure to eight different sponsors and six different industries across GCF II's ten coinvestments. GCF II's co-investment in Alion Science and Technology Corporation (Alion) is detailed below.

Headquartered in McLean, Virginia, Alion is a leading provider of advanced engineering, information technology, naval architecture and operational solutions to the U.S. Federal Government, commercial customers and state and foreign governments, addressing issues relating to national defense, homeland security and energy. The company's engineered solutions support smarter decision-making and enhanced readiness in rapidly-changing environments. Alion's highly educated and credentialed employee base brings deep technical and engineering expertise to bear and is imbedded with customers in offices and laboratories worldwide.

GCF II co-invested in Alion alongside Veritas Capital Management in August 2018. GCM found this co-investment to be compelling for a number of reasons, including (i) GCF II's capital went to fund an acquisition approximately three years after Veritas' initial investment at a limited write-up to cost (we believe this de-risked the investment and could result in a shorter hold period), (ii) strong re-occurring revenue and enhanced visibility due to Alion's long-term contracts with its customers, (iii) Alion's deeply entrenched customer relationships with high barriers to entry, (iv) the company's unique, specialized employee base with high security clearances, and (v) the opportunity to partner with a premier sponsor with significant relevant sector expertise.

• 1. The NAV per unit is unaudited.
• 1. Performance is calculated on a NAV per unit basis. Past performance is not a reliable indicator of future performance, the value of investments can go up and down.
• 1. The NAV per unit at inception is based on the subscription price per unit which is equal to $1.25.
• 1. It is Pengana's intention to pay $0.025 per unit for each six month period from listing though to June 2021 with the first distribution payable for the period ending 31 December 2019. Thereafter, Pengana intends to target a cash distribution yield equal to 4% p.a. of the NAV (excluding the total value of the Alignment Shares). The targeted distribution is only a target and may not be achieved. Investors should read the Risks summary set out in Section 11 of the PDS.
• 1. In reviewing the case studies / trade examples ("Examples") provided in this presentation, you should consider the following:

This presentation does not purport to make any recommendations regarding, or to serve as a basis or analysis on which persons might make investment decisions regarding, specific securities, investment strategies, industries or sectors. It is prepared for informational purposes only to provide background, data and topical comment on various aspects of the alternative investments industry. References to specific securities, strategies, industries or sectors contained in this presentation, whether successful or unsuccessful, are presented solely for illustrative and educational purposes only and should not be relied on in connection with making any investment decisions. The returns (actual or hypothetical) described in the Examples, if any, should not be taken as any indication of the performance of any investment in any strategy described herein. Further, potential outcome scenarios described in each Example represent only certain possible outcomes for the given trade. Additional outcomes may include severe or total losses.

References to "managers" or "investment managers" in this presentation are not necessarily to "managers" or "investment managers" of the underlying funds ("Underlying Funds") in which one or more GCM Grosvenor fund or account invests. Where expressly noted, however, references to "managers" or "investment managers" in this presentation are to the subset of investment managers of Underlying Funds in which one or more GCM Grosvenor fund or account invests.

By accepting this information, you agree not to use it for any purpose other than evaluating your investment in a GCM Grosvenor fund or account. Moreover, the information may include material, nonpublic information relating to particular securities and/or the issuers thereof. Furthermore, you acknowledge that you may be receiving material, nonpublic information and that, under certain circumstances, applicable securities laws may prohibit the purchase and sale of securities by persons or entities who are in possession of material, nonpublic information relating to such securities and/or the issuers thereof. Therefore, it is possible that trading in securities and/or the issuers thereof which are the subject of information contained in this presentation may be prohibited by law.

GCM Grosvenor obtains information about investment managers with whom GCM Grosvenor funds or accounts do not invest, either through direct communication with such investment managers or through third-party sources. In attributing particular outlooks, expectations or statements to "managers" or "investment managers," GCM Grosvenor has relied exclusively on information communicated to it by such "managers" or "investment managers" or by third-party sources whom we reasonably believe to have reliable information concerning these matters. GCM Grosvenor has not independently verified such information and makes no representation or warranty as to its accuracy or completeness.

None of Pengana Private Equity Trust ("PE1"), Pengana Investment Management Limited (ABN 69 063 081 612, AFSL 219 462) ("Responsible Entity"), Grosvenor Capital Management, L.P., nor any of their related entities guarantees the repayment of capital or any particular rate of return from PE1. Past performance is not a reliable indicator of future performance, the value of investments can go up and down. This document has been prepared by the Responsible Entity and does not take into account a reader's investment objectives, particular needs or financial situation. It is general information only and should not be considered investment advice and should not be relied on as an investment recommendation

Pengana Investment Management Limited (Pengana) (ABN 69 063 081 612, AFSL 219 462) is the issuer of units in the Pengana Private Equity Trust (ARSN 630 923 643) (the Trust). A Product Disclosure Statement for the Trust (PDS) is available and can be obtained from our distribution team or website. A person should obtain a copy of the PDS and should consider the PDS carefully before deciding whether to acquire, or to continue to hold, or making any other decision in respect of, the units in the Trust. This report was prepared by Pengana and does not contain any investment recommendation or investment advice. This report has been prepared without taking account of any person's objectives, financial situation or needs. Therefore, before acting on any information contained within this report a person should consider the appropriateness of the information, having regard to their objectives, financial situation and needs. None of Pengana, Grosvenor Capital Management, L.P. (Grosvenor), or their related entities, directors, partners or officers guarantees the performance of, or the repayment of capital, or income invested in the Trust. An investment in the Trust is subject to investment risk including a possible delay in repayment and loss of income and principal invested.

PENGANA INVESTMENT MANAGEMENT LIMITED ABN 69 063 081 612 AFSL 219 462

Level 12, 167 Macquarie Street, Sydney NSW 2000

T: +61 2 8524 9900

F: +61 2 8524 9901 E: clientservice@pengana.com PENGANA.COM