Pantheon listed FoF looks to secondaries

Pantheon International Participations has seen its net asset value grow by more than 20 percent in the last year. Current market conditions are causing the fund to shift focus nearly exclusively to the booming secondaries market.

Pantheon International Participations committed £113 million (€142 million; $207 million) to 13 secondary transactions in the year ending 30 June 2008, and the fund of funds is now preparing to focus purely on the secondaries market for the “foreseeable future”.

“Under normal circumstances [secondaries] would constitute around 30 percent of our programme, but for the foreseeable future we will purely focus on the secondaries market,” Pantheon managing partner Andrew Lebus told PEO.

He added that even without the increased opportunities thrown up by changing market conditions, the secondaries market was developing naturally as more institutions use it as a tool to rebalance portfolios.

The London-listed private equity investment trust experienced growth in its net asset value of 20.6 percent in the last year, taking it to £736 million. As well as its secondary investments over the period, PIP committed £237 million to 36 new funds and £7 million to direct co-investments.

The fund benefited from favourable currency movements on top of the strong performance of its portfolio.

PIP invests in a diverse selection of funds, including venture capital, special situations and buyout as well as making selected direct investments in secondaries and individual companies. 94 percent of the fund is invested in Europe and the US, with 5 percent in Asia.