Pengana Capital Group Posts 42% Revenue Growth and $2.61M Profit

Financial Turnaround and Growth

Pengana Capital Group Limited has delivered a notable financial turnaround for the year ended 30 June 2025, reporting a statutory profit after tax of $2.61 million compared to a loss of $4.35 million in the prior year. Revenue surged 42% to $60.5 million, reflecting strong growth in both management and performance fees. This improvement underscores the success of Pengana's strategic repositioning towards private markets, particularly its Private Credit division.

The company’s funds under management (FUM) increased by 9% to $3.6 billion, supported by net inflows and performance gains. This growth was driven by the launch of new products such as the Pengana Global Private Credit Trust and TermPlus, as well as securing its first Separately Managed Accounts client and a strategic partnership as a preferred Global Private Credit partner for a major group.

Balance Sheet Strength and Capital Management

Pengana’s balance sheet remains robust with no debt and net tangible assets per share improving to 38.96 cents. The company continues to manage capital conservatively, maintaining liquidity and flexibility to pursue growth opportunities. During the year, Pengana repaid $10.7 million of loans under its Employee Loan Share Plan, reducing off-balance sheet liabilities and strengthening equity.

The Board declared a fully franked final dividend of 2 cents per share, adding to the interim dividend of 2 cents, bringing total dividends for the year to 4 cents per share. This dividend policy reflects Pengana’s commitment to returning value to shareholders while supporting ongoing business expansion.

Strategic Initiatives and Executive Incentives

Pengana’s strategic focus on private markets is paying dividends, with private market FUM growing from $0.2 billion in 2019 to $1.0 billion in 2025. The company’s shift towards higher-margin, scalable investment solutions is driving net revenue growth that outpaces FUM growth, supported by improved gross margins and favourable joint venture arrangements.

Executive remuneration has been updated with the introduction of a new Long Term Variable Remuneration Plan aligned to shareholder returns. The CEO and key management personnel received performance rights and premium exercise priced options, incentivising long-term value creation. Non-executive directors also participated in a fee-sacrifice equity plan to align interests with shareholders.

Audit and Governance

The financial statements were audited by Ernst & Young, who issued an unqualified opinion. Key audit matters included valuation of financial assets at fair value through profit or loss, revenue recognition of management and performance fees, and impairment testing of goodwill. The company maintains strong corporate governance practices consistent with ASX recommendations.

Looking ahead, Pengana is well positioned to capitalise on growth in global private credit and expand its product offerings across private and listed equity segments. The company’s scalable infrastructure and strategic partnerships provide a solid platform for sustained shareholder value creation.