News & Analysis

Pantheon makes US banking staple deal

The deal was part of PIP's eight commitments to secondaries deals and funds since July amid favourable pricing conditions in the secondaries market.

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Pantheon International Participations (PIP), Pantheon’s listed fund of funds, completed a staple deal involving US banking-focused funds in the second half of last year as part of its £135 million ($192 million; €174 million) commitment to secondaries since July.

The $22.7 million staple deal involved stakes in two US growth equity funds from 2005 and 2008 focused on US regional banking and a primary commitment to the manager’s next fund, according to PIP’s Half-Yearly Financial Report, released on 8 March. A spokeswoman for PIP declined to give further details.

In total, the London-listed vehicle committed £59.5 million across five secondaries deals in the last six months of 2015, mainly buying stakes in large buyout funds. PIP has also committed £74.7 million to three secondaries funds so far in 2016.

“The buoyant secondary market gave the company the opportunity to purchase portfolios that are underpinned by companies with strong growth prospects or a track record of being able to withstand economic uncertainty,” the report noted.

PIP’s largest transaction was a $46.6 million deal in September where it acquired 11 buyout and growth equity fund interests in 2005 to 2008-vintage vehicles from a US corporate pension fund. The names of the funds were not disclosed.

The vehicle also completed a £14.2 million secondaries deal with an Asian growth equity fund that was 80 percent funded at completion in January, according to PIP’s January newsletter.

Other secondaries deals in the period include:

  • a £4.4 million special situations portfolio of energy assets
  • a £31.2 million portfolio of US and European buyout funds
  • a £5.9 million portfolio of US large buyout funds
  • a £2.7 million US large buyout fund focused on healthcare and business services

Pantheon screened over $40 billion of deals during 2015 and expects more secondaries sales this year due to lower public valuations and the denominator effect encouraging sellers.

Pantheon, which has $32 billion in assets under management, has acted as PIP‘s manager since inception in 1997.