PE1 Portfolio Update

One of the benefits private companies have in times of extreme volatility and market turmoil is an ability to pivot quickly and realign their businesses to take advantage of any changes to the environment. Unlike listed companies, these businesses are not pressured by short term share price valuations, or the burdensome shareholder approvals often required by listed companies, and so are able to make these changes quickly, and with longer-term views.

Here are examples from 10 of the largest underlying investments in the Pengana Private Equity Trust (ASX:PE1) portfolio, and how they have performed through COVID so far this year.

We hope this will give you more insight into the portfolio at its current stage of development1.

Instacart, which represents the largest private equity position in the PE1 portfolio, is an online grocery delivery service operating as the asset light solution for existing grocers.

As we have noted a number of times in our recent communications with investors, Instacart has significantly benefitted from the work from home orders, adding millions of new customers since the COVID-19 crisis began and has seen order volume go up by as much as 500% in the past 12 months.

Due to its recent success, Instacart announced on 11 June that it had raised US$225 million in a new funding round, catapulting its valuation from US$7.9 billion to US$13.7 billion.


Pathway Vet Alliance is a leading consolidator of general practice, specialty and affordable care veterinary clinics, as well as a provider of veterinary management services in the US.

While the company saw a decline in sales in March due to the stay at home restrictions, it pivoted quickly and has gone live with telemedicine programs within a number of its divisions that helped offset the in-person sales losses.

We believe that these actions, together with the strong growth trends in the vet services market, as well as the potential for current market dynamics to help drive an increase in consolidation of the highly fragmented vet services market, should help to position the company for success even if the current crisis persists. provides cloud-based software that allows small- and mid-sized businesses to build their own websites using simple drag and drop tools, without needing to know how to code.

The website design platform enables entrepreneurs and designers to easily share their ideas, setup online shops and launch products.

The company has continued to perform well in the current environment and with better than expected earnings and increased demand for website development among small- to mid-sized businesses over the last few months, the convertible note in Wix that PE1 has exposure to through its opportunistic sleeve has traded up 70%+ in 2020.


Lineage Logistics, LLC is a global warehouse and logistics company specialising in cold storage. The company operates temperature-controlled warehouses for both perishable and frozen goods in exchange for ongoing fees from its customers.

As an industry, cold storage provides critical infrastructure in the supply chain between food producers and consumers and Lineage has benefitted from the increased volume in the grocery supply chain due to the stay at home restrictions stemming from the pandemic.


Alion Science and Technology Corporation is a leading provider of advanced engineering, information technology, naval architecture and operational solutions to the US Federal Government, commercial customers and state and foreign governments.

The company’s engineered solutions support smarter decision-making and enhanced readiness in rapidly-changing environments.

The COVID-19 crisis has not impacted Alion’s business materially, as much of the company’s work is viewed as essential, and double-digit revenue growth is currently anticipated for the company when its fiscal year ends in September.


Innophos is a leading global producer of phosphate and non-phosphate ingredients primarily used across the food, health, nutrition, and industrial end markets. Innophos’ products across the phosphate and non-phosphate segments are critical to the taste, texture, performance and/or nutritional contents of foods, beverages, pharmaceuticals, oral care products and other applications.

The company has not been impacted to date by the current crisis, with all plants running normally, and financial performance is currently ahead of the sponsor’s original plan for 2020.


BDP International is an asset-light, outsourced, global logistics solutions provider managing the end-to-end movement of shipments globally on behalf of chemical, industrial, healthcare, consumer and retail customers. The company specialises in the management of highly complex, regulated freight supply chains, including leading market positions serving the packaged chemicals and hazardous materials sectors.

The company saw net revenue decline modestly in the first quarter, which reflected softness in the US, Europe and Asia in part driven by the impact of COVID-19 on global supply chains and underlying demand, and in part due to currency headwinds from a strengthening US dollar. Q2 may also be challenging for the company, as macroeconomic conditions have continued to deteriorate around the world and demand for BDP’s services will be correlated to global GDP.

That said, the company is fundamentally sound and well-capitalised, and experienced double-digit EBITDA growth in Q1 2020 as compared to Q1 2019.


Spice World is the largest supplier of fresh and processed garlic to grocery, mass, and club stores in the US.

As a seller of a recession resistant, staple food product, it has been unsurprising that the company has not seen any business disruptions and sales have actually been stronger than prior year sales and versus budget.

Moreover, Spice World has seen its gross margins increase through Q2 and the company may ultimately outperform the sponsor’s plan for 2020.


Cotiviti is a healthcare service provider that leverages data analytics and technology to limit costs and ensure regulatory compliance for various stakeholders in the healthcare industry. Cotiviti’s deeply embedded analytic and predictive modelling solutions, complemented by deep subject matter expertise, empower clients to maximize profitability through cost reduction while improving the quality of healthcare, enhancing the patient experience and assuring appropriate and compliant reimbursement.

Cotiviti has continued to perform well since the COVID-19 pandemic started and was recently profiled in a Forbes article about companies that are saving the world from COVID-19.

The company has created a COVID-19 Outbreak Tracker that provides weekly predictions about potentially hidden hot spots around the US. The map also highlights areas where coronavirus mitigation efforts may be working, illustrating a decreased probability of a hidden outbreak.


Unifrax is a global leader in manufacturing high performance specialty fibers and inorganic materials, whose products are used to solve countless application problems across many industries, including chemical processing, power generation and storage, ceramic and glass, fire protection, aerospace, appliance, hearth, automotive, and transportation.

2020 has been a bit challenging thus far for Unifrax, with performance below budget from a revenue and adjusted EBITDA perspective due in part to weakness in the automotive industry.

Despite the company’s challenges to date in 2020, there have also been some positive signs, with demand for a number of products increasing (e.g., filtration).

Additionally, the company’s new product pipeline is strong with a variety of interesting applications in battery, emissions, and other green technologies.





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 to treat it as confidential and 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, United States securities laws 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, and the securities laws of other jurisdictions may contain similar prohibition.  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). 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.

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