Details of Pantheon’s latest infra secondaries programme revealed

Pantheon Global Infrastructure Fund IV's target, capital raised so far and deal log were disclosed in a presentation to a US pension this week.

Pantheon, the 10th-largest secondaries firm by fundraising, is seeking around 36 percent more for its latest infrastructure secondaries vehicle amid an uptick in pricing for secondhand stakes in the asset class’s funds.

The London-headquartered manager is seeking $3 billion for Pantheon Global Infrastructure Fund IV and has already raised $2.3 billion, according to a presentation about the fund prepared for the Boston Retirement System on 19 July.

PGIF IV has already deployed $1.3 billion across 13 investments, according to the presentation. It is marked at a 1.1x and has delivered a 23.9 percent net internal rate of return, according to the presentation. Secondaries Investor understands this is as of 31 December 2022.

The firm’s infrastructure strategy delivered a 15.5 percent gross internal rate of return and a 12.7 percent notional net IRR as of 31 December, according to the documents.

Pantheon’s prior infrastructure fund, Pantheon Global Infrastructure Fund III, raised $2.2 billion in 2019 ahead of a $1.2 billion target, according to Secondaries Investor data. That fund delivered a 0.17x distributed to paid-in capital ratio and a 1.38x total value to paid-in ratio as of the end of September last year, according to data from Clwyd Pension Fund.

As of April, PGIF IV had backed deals involving sponsors such as Carlyle Group, Marguerite, Patrizia, Macquarie, Apollo Global Management and EQT, according to the presentation. These were across a mix of LP stake acquisitions, direct secondaries and co-investments.

Infrastructure attracted the highest pricing in the first quarter of this year, with bids between 90 to 95 percent of net asset value, according to data from PJT Partners. Pricing for stakes in infra funds was higher than buyout funds, which garnered 85 to 90 percent of NAV, and was above the average for all strategies of 83 to 88 percent of NAV.

Infrastructure and real assets secondaries accounted for 8 percent or $8.8 billion of deal volume last year, according to Greenhill research. On a dollar basis, this was a jump from the $6.7 billion recorded in 2021.

Ardian holds the record for the largest infrastructure fund raised, with its $5.25 billion ASF VIII Infrastructure, which held its final close last year. That fund eclipsed Strategic Partners’ Infrastructure III, which raised $3.75 billion by final close in 2020.

Pantheon declined to comment on the presentation materials.

– This report was updated to note the performance of PGIF IV is as of 31 December 2022.