For the financial year ended 30 June 2016, Pantheon International’s net assets stood at just under GBP1.2bn and it recorded an increase of 22.3% in NAV per share. The ordinary share price increased from 1,272.0p to 1,285.0p, an increase of 1%. The discount widened from 17% to 31%. The redeemable share price decreased from 1,285.0p to 1,175.0p, a decrease of 9%, as the discount widened from 16% to 37%. However, since the financial year end, the discounts on PIP’s ordinary and redeemable shares have narrowed materially and, at the time of writing, are 18% and 28% respectively.
Assets in the underlying portfolio generated returns of 6.8% and foreign exchange gains added 17.2% to NAV per share. The fund continued to benefit from the strong exit environment, particularly in the healthcare, consumer and information technology sectors, and PIP’s portfolio generated GBP252m of distributions, equivalent to a rate of 29% of opening portfolio assets. Trade sales and secondary buyouts represented the most significant source of exit activity during the year. Calls from underlying private equity funds were GBP62m, equivalent to an annualised call rate of 16% of opening undrawn commitments. This resulted in a net portfolio cash flow of GBP190m during the period before new investment commitments are taken into account. They say the weighted average fund age of 7.3 years supports the cash-generative nature of PIP’s mature portfolio.
PIP made 59 new investments in the year, amounting to GBP345.9m in commitments with GBP192m drawn at the time of purchase. This included GBP173.2m committed to 13 secondary and late primary funds, GBP78.8m to 26 co-investments alongside selected private equity managers and, in line with its focus on managing the maturity profile and gaining exposure to niche funds, the Company also added GBP93.9m in primary commitments. Since the year end, the Company has committed an additional GBP19.4m.
PIN / PINR : Pantheon discount narrowing again