Private equity company, Pantheon International (PIN), invests in funds of funds in the primary and secondary market, and directly into private companies through co-investments.
Earlier this morning, PIN released a joint-statement from its board and manager:
Recent substantial movements in asset prices and currency exchange rates associated with the Covid-19 crisis and its inevitable impact on global economic growth have accelerated after 29 February 2020 (the end of PIN’s monthly results update period). These significant negative economic and market developments are likely adversely to affect the value of the company’s assets. PIN is closely monitoring these developments in order to measure the potential impact on the valuation of PIN’s underlying investment portfolio, which will be reflected in the future announcements of monthly NAVs.
Pantheon, the company’s manager, remains fully operational and all of its systems and remote working provisions are functioning as anticipated as part of its business continuity plan. The manager is in frequent contact with the company’s board.
Pantheon is in regular dialogue with PIN’s underlying managers and has been pleased with the breadth and depth of their responses to date. Even prior to the COVID-19 crisis, given the point in the macroeconomic cycle, Pantheon had been engaging with its underlying managers to understand how they were preparing their portfolio companies for more difficult times. In addition, the majority of PIN’s diversified portfolio is tilted towards technology, healthcare and consumer staples which could be considered more resilient industry sectors. There is no doubt that the Covid-19 pandemic will result in a deterioration in global economic prospects but the board and manager are confident that the experienced private equity managers in PIP’s portfolio will remain nimble and able to add value to their portfolio companies through the crisis as well as capitalise on attractive investment opportunities.
PIP has a prudent approach to balance sheet management and has a healthy net cash position (£148m as at 29 February 2020), unutilised credit facilities amounting to US$163.0m and €59.8m committed until June 2022, and has carefully controlled the level of undrawn commitments relative to NAV and available liquidity to ensure that the company can meet calls from underlying funds even during periods of market disruption. Furthermore, we are backing experienced private equity managers that have managed portfolios through various macroeconomic cycles, and who have carefully considered the use of debt in their investee companies, many of which have covenant-lite structures in place.
The board recognises that the current market volatility has been extremely unsettling for shareholders. It is our aim to share as much information as possible as events unfold. As directors and personal shareholders of PIP, we continue to have conviction in the private equity market which is long term in nature. We are confident that Pantheon’s nearly four decades of experience of managing assets through numerous market cycles means that PIP is positioned well to withstand this evolving and highly fluid situation
PIP: Update from private equity company Pantheon International