Strong exit environment helps drive Pantheon's returns

In its results statement, PIP said sales to corporate buyers were the most significant source of exits, especially in the US.

Although the high-valuation environment is cited as putting pressure on managers, PIP believes the GPs it is backing in the mid-market are pursuing tactics such as buy-and-build, corporate carve-outs and sector specialisation to help mitigate this situation.    

The portfolio as a whole generated underlying returns of 14.7%, while NAV per share rose to £24.15, an increase of 10.3% compared to the previous year.

PIP made 50 new investments during the period, amounting to £256m in commitments. It committed £107m in 13 secondaries deals and £62m in co-investments. Geographically, investments were weighted towards the US (55%) and Europe (40%).

PIP notably amended its investment strategy away from investing in secondary investments containing tail-end funds (funds older than 10 years), so that PIP can benefit from younger, better-performing assets.  

The overall investment portfolio consists of secondaries (43%), co-investments (32%) and primaries (25%).

For primary commitments, PIP has invested in HgCapital Saturn I, Chequers Capital XVII and Equistone Partners Europe during this year in Europe. As for co-investments, 38% of the portfolio is invested in Europe, and the rest in US (50%) and Asia and emerging markets (12%).

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