Pantheon International’s NAV per share rose by 8.2% over the course of 2015, outperforming the FTSE All-Share, which fell by 2.0%, and the MSCI World, which rose by 3.3%. However, they say share price performance was disappointing (-4.1%) as it was impacted by a sector-wide increase in discounts which have been driven by uncertainty in financial markets.
The portfolio generated distributions of £148m, equivalent to an annualised rate of 34% of opening portfolio assets. The realisations were primarily in the healthcare, consumer and information technology sectors; the average uplift on exit across a sample of their exit realisations was 50%. Private equity exit activity in 2015 was supported by attractive pricing driven by public market valuations and demand from strategic buyers for mature assets. Many private equity managers remained firmly focused on realising assets in their portfolio. Calls from underlying private equity funds were £31m, equivalent to an annualised call rate of 24% of opening undrawn commitments, across a range of regions and sectors. The weighted average age of funds in Pantheon’s portfolio is 7.7 years.
During the six months to 31st December 2015, Pantheon International made 24 new commitments amounting to £121.9m. This is comprised of five secondaries (£59.5m), 12 co-investments (£37.2m) and seven primary commitments (£25.2m).
The majority of new investments were made to US large buyout and growth equity funds, reflecting greater investment opportunities in the region. Pantheon International continued its efforts to target attractive primary funds which had high quality managers and were less available in the secondary market. They say the buoyant secondary market gave them the opportunity to purchase portfolios that are underpinned by companies with strong growth prospects or a track record of being able to withstand economic uncertainty.
Since 31st December 2015, the Company has committed a further £74.7m to three secondary funds (£42.7m), three primary funds (£13.8m) and seven co-investments (£18.2m).
PIN : Pantheon let down by discount widening