AIX secures ByteDance investment at significant discount as AI portfolio buildout accelerates
As featured in the Adviser voice. View the original article here.
The AI Private Opportunities Trust (ASX: AIX) has secured an initial 15% portfolio allocation to global AI powerhouse, ByteDance, at an implied company valuation of US$450 billion, a meaningful discount according to recent secondary transactions.
Reported ByteDance secondary transactions include General Atlantic at approximately US$550 billion and a proposed sale by a founding shareholder at an implied valuation of approximately US$600 billion.
The Trust has also established a 2.25% investment in AI company Handshake, taking the portfolio to approximately 17% invested, with further investments expected to be announced shortly. It has announced an initial NAV of $9.99.
AIX seeks to target private AI companies at attractive valuations and capture the significant uplift which can occur before they go public or are sold, said Adam Myers, Executive Director at Pengana Capital Group. “The ability to access high-quality private AI companies at favourable valuations is one of the key advantages of disciplined private market investing.
“We’re pleased to have secured ByteDance at what we believe is a highly attractive entry valuation.
“Our focus remains on building a unique portfolio of desirable global AI companies, not easily available to investors elsewhere”, Myers said.
AIX has made significant progress securing allocations in several other large, strategically important private AI companies, and the Trust expects to be more than 50% committed by the time it publishes its July newsletter in early August.
“These initial investments represent the first stage of AIX’s portfolio construction, with the investment team continuing to execute on a robust pipeline of private AI opportunities.
“The portfolio is being built out in line with the opportunity investors sought to access, and our focus remains on deploying capital with discipline and creating value over the life of the Trust”, Myers said.
AIX was established to provide Australian investors with access to a diversified portfolio of high-quality, privately held artificial intelligence companies that are generally unavailable through public markets, with a disciplined approach to portfolio construction and long-term value creation.
The Trust’s investments are managed by US-based GCM Grosvenor, a global alternative asset manager with more than US$91 billion in assets under management, which also manages investments for the Pengana Private Equity Trust (ASX: PE1).
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IMPORTANT INFORMATION AND DISCLAIMER
Pengana Investment Management Limited ACN 063 081 612, AFSL 219462 (Pengana) is the issuer of this information and units in AI Private Opportunities Trust ARSN 697 001 184 (AIX). This information is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision in respect of AIX you should consider the PDS, TMD and ASX announcements available at pengana.com/AIX and assess whether AIX is appropriate given your objectives, financial situation and needs. Neither Pengana nor any of its related entities, directors, partners or officers guarantees the performance of, or the repayment of capital, or income invested in AIX. An investment in AIX is subject to investment risk including a possible loss of income and principal invested. Past performance is not a reliable indicator of future performance, the value of investments can go up and down. There are no guarantees that an active trading market with sufficient liquidity will develop or that such a secondary market will sustain a price representative of the NAV per AIX unit. In circumstances where AIX units are suspended from the ASX, unitholders may not be able to sell their AIX units via the ASX until trading recommences.
