Pantheon seeks extension to raise latest infrastructure programme

Pantheon, the fourth biggest Europe-headquartered secondaries firm, according to the SI 50, is seeking more time to raise its latest infrastructure secondaries programme, documents from a US pension fund show.

The London-based manager has sought approval to extend its fundraising period for Pantheon Global Infrastructure Fund IV until the end of 2023, according to materials prepared for Ventura County Employees’ Retirement Association’s 25 September board of retirement meeting.

Fund IV was originally contracted to close in October this year, the documents note.

Global Infrastructure Fund IV launched in October 2021 with a $3 billion target, according to Secondaries Investor data. The vehicle has raised at least $2.3 billion so far and attracted commitments from investors including Fubon Life Insurance and State Universities Retirement System of Illinois.

Its predecessor, Pantheon Global Infrastructure Fund III, raised $2.2 billion in 2019, beating its $1.2 billion target, Secondaries Investor data shows.

Fund IV is targeting a net internal rate of return of 11-13 percent and a net-multiple of invested capital of 1.4-1.6x, according to the VCERA documents. Carried interest is set at 10 percent over an 8 percent hurdle.

It will invest between 30 percent and 60 percent in North America; 30 percent and 60 percent in Europe, and 5 percent to 15 percent in the Asia-Pacific region. It will invest in deals between $50 million and $300 million, the documents show. Around 70 percent of its deals will be in LP portfolios and GP-led processes, and the remainder in co-investments.

The fund has already committed $1.3 billion to 13 investments, according to presentation  materials by Pantheon prepared for VCERA’s meeting.

This week, Pantheon said it had launched offices in Singapore and Geneva to accelerate its private wealth platform.

Infrastructure secondaries is expected to grow this year, with advisory firm and placement agent Campbell Lutyens predicting as much as $15 billion in deal volume this year, as Secondaries Investor reported last month. Driving this is a large increase in LP-led sales – which are expected to grow from around $2.5 billion last year to roughly $7 billion this year – as cash-strapped investors seek capital for re-ups, partner David Perrin told Secondaries Investor.

Energy and infrastructure fund stakes accounted for 4 percent of the $43 billion in deal volume in the first half of the year, according to estimates by Jefferies.

A spokesperson for Pantheon declined to comment.