Australian asset management firm Pengana Capital Group plans to list shares of its unit Pengana Equity Trust.

Pengana Capital Group expects to secure between $250 million to $1 billion in the initial public offering (IPO) for its trust.

Pengana Capital Group said that individual investors are seeking exposure to private equity and a 5 percent incentive will further encourage participation.

Pengana, which has a market capitalisation of $225 million, has appointed U.S. alternative asset management firm Grosvenor Capital Management to select investments for the trust and construct the portfolio.