SYDNEY, AUSTRALIA: Pengana Capital Group (ASX: PCG) has signed an agreement to divest its 65% direct equity stake in Lizard Investors LLC, a Chicago-based asset management firm that specialises in global small to mid-cap equities, as part of a management buyout led by Lizard Chief Investment Officer and Portfolio Manager, Jon Moog.
Whilst Pengana Capital will continue to enjoy a close relationship going forward with Lizard, following a strategic review it was concluded that Lizard Investors LLC would thrive and be able to attract and retain talent if wholly owned by the management team.
The divestment will not, in any way, impact arrangements between Pengana and Lizard regarding the management of the Pengana Global Small Companies Fund, which have been in place for nearly 8 years, predating Pengana’s investment in Lizard by nearly 5 years.
The Lizard divestment is expected to be earnings accretive in the second half of the 2023 financial year, however it will result in Pengana’s reported total funds under management (“FUM”) reducing by circa $258 million, which will be reflected in the 31 January 2023 FUM announcement.
Pengana expects to release its Interim Financial Report covering the six months to 31 December 2022 on Friday 24 February 2023.