Pantheon makes 17% in shortened year – Pantheon International has published results for the 11 months ended 31 May 2017 (it moved its year end from June to May). Over this period:
- NAV per share increased by 17%, from 1,873.6p to 2,189.9p.
- Net assets increased to GBP1,388m (June 2016: GBP1,187m).
- The ordinary share price increased from 1,285.0p to 1,793.0p, an increase of 40% and the discount decreased from 31% to 18%.
- The redeemable share price increased from 1,175.0p to 1,632.5p, an increase of 39% as the discount narrowed from 37% to 25%.
- Assets in the portfolio generated underlying (pre-FX) returns of 16.2%.
- Distributions received in the eleven months to 31 May 2017 were GBP293m. Excluding proceeds from the previously announced sale of some tail-end funds, this was equivalent to an annualised rate of 27% of opening private equity assets. After funding GBP82m of calls, net cash flow from the portfolio totalled GBP211m.
- GBP291m of new investment commitments were made during the eleven months with GBP151m drawn at the time of purchase.
Commenting on Pantheon’s eleven month performance, Sir Laurie Magnus, Chairman, said: “PIP has had a successful eleven months with strong returns from its underlying portfolio and both its ordinary and redeemable share prices having increased significantly. The global private equity market continues to be competitive and valuations remain high. Nonetheless, PIP has been able to take advantage of its access to Pantheon’s extensive platform of manager relationships to redeploy capital into compelling new investments across all geographic regions. This year, PIP celebrates its 30(th) anniversary since listing on the London Stock Exchange in 1987. Since its inception, the trust has grown its net assets to just under GBP1.4bn and generated annual average NAV per share growth of 11.8%. As we reflect on PIP’s accumulated capital growth from performance generated over the past 30 years, we can remain confident that our manager, Pantheon, has the expertise and track record to continue to invest with the best private equity managers globally that are capable of generating attractive returns for the benefit of shareholders.”
Pantheon’s portfolio generated GBP293.2m of distributions. This included GBP23.6m in respect of previously reported disposals of secondary interests. Excluding these disposals, Pantheon’s annualised distribution rate amounted to 27% of opening portfolio assets. Trade sales continue to be an important source of exit activity along with secondary buyouts. During the period, calls from existing commitments to private equity funds amounted to GBP82.1m, equivalent to an annualised call rate of 23% of opening undrawn commitments. This resulted in a net cash inflow of GBP211.1m during the period before taking account of new investments. Pantheon’s mature portfolio continued to generate cash and the weighted average fund age was 6.7 years.
They say that the global private equity market remains competitive and valuations are high. This has been particularly acute in the secondary market where high pricing levels have persisted and it has been more challenging to secure deals at attractive values. Nonetheless, Pantheon has been able to take advantage of its access to Pantheon’s extensive platform of manager relationships, built up over 35 years, to make 39 new investments during the eleven month period across all geographic regions. These amounted to GBP290.5m in new commitments, of which GBP150.6m was drawn at the time of purchase, and included GBP129.4m committed to six secondary transactions, GBP67.3m committed to 20 co-investments and GBP93.8m to 12 primary commitments. Although Pantheon continues to emphasise secondary investments in its portfolio, its allocation to co-investments has increased gradually since it gained more opportunity to invest directly alongside selected managers in 2012. Co-investing is a cost-efficient means of gaining access to well-managed investments and, in combination with secondary investments, allows the company even greater flexibility to manage the maturity profile of its portfolio. Pantheon continues to invest actively and, since the period end, has committed a further GBP20.8m.
PIN : Pantheon makes 17% in shortened year