• Home
  •  
    Regions
    • Europe
    • UK & Ireland
    • DACH
    • Nordic
    • France
    • Southern Europe
    • Benelux
    • CEE
    • Asia
  •  
    Deals
    • Buyouts
    • Venture
    • Exits
    • Refinancings
    • Build-up
    • Turnaround
    • Secondaries
    • Advanced deals search
  •  
    Funds
    • Buyout
    • Venture
    • Mezzanine
    • Debt
    • Funds-of-funds
    • Secondaries
    • Fundraising pipelines
    • Advanced funds search
  •  
    GPs & LPs
    • GP profiles
    • LP profiles
    • GP news
    • LP news
    • Sponsors search
    • LPs search
  •  
    Secondaries
    • Deals
    • Funds
    • News
    • Analysis
  •  
    People
    • People moves
    • Analysis
    • In Profile
    • Q&A
    • Videos
    • Comment
  •  
    Analysis
    • In Profile
    • Fundraising
    • Q&A
    • Comment
    • Videos
    • Podcast
    • Reports
    • Data Snapshots
  •  
    Unquote Data
    • Deals search
    • Exits search
    • Funds search
    • Sponsors search
    • Advisers search
    • LPs search
    • League tables
    • Reports
  • Sign in
  • Sign in
    • You are currently accessing unquote.com via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0)203 741 1137

      Email: Georgina.Lawson@acuris.com

      • Sign in
     
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
  • Follow us
    • Twitter
    • LinkedIn
  • Free Trial
  • Subscribe
Unquote
Unquote
  • Home
  • Regions
  • Deals
  • Funds
  • GPs & LPs
  • Secondaries
  • People
  • Analysis
  • Unquote Data
  • You are currently accessing unquote.com via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0)203 741 1137

    Email: Georgina.Lawson@acuris.com

    • Sign in
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
Unquote
  • GPs

Pantheon bullish on consolidation opportunities with fresh USD 2.4bn co-investment vehicle

Jeff Miller of Pantheon
Jeff Miller, Pantheon
  • Min Ho
  • 11 May 2023
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  

As it deploys its fifth global co-investment strategy, private markets investor Pantheon is expecting to be highly selective on deals but is confident that there are opportunities to be had through sector consolidation, Jeff Miller, global head of private equity told Unquote.

“Even through we've seen some sub-segments that are still [trading at] 20x EBITDA or more as of Q4 last year, they’ve tended to be areas where there's a lot of M&A to do,” he said. “I think sponsors are leaning into the ability, the visibility and M&A opportunities to really bring down that multiple over time.”

An example of this is the wealth management industry, he said, noting the continued fragmented nature of the industry and that there remains a “ton of roll-up opportunities” to execute.

The UK-headquartered GP sees high valuation expectations as “probably the number one consideration on why we might turn down deals,” especially in light of recession fears, he said.

“The market in this process still have resetting in valuations. And while we've seen a bigger reset so far in tech, we've not seen as much in some other areas,” he said.

Although the GP is taking a cautious stance on the investment environment, some parts of the healthcare industry also remain “reasonably robust” given the stability in the sector, even in a downturn, Miller noted. This is an area where sponsors can feel “reasonably good” about putting money, he said.

Tough environment

The comments come following the USD 2.4bn final close of Pantheon Global Co-Investment Opportunities Fund V in April 2023. The GP was able to secure “a good number of re-ups” from existing LPs, as well as some new LPs to the strategy, he said. Public and corporate pensions feature highly in the new vehicle, although it also saw a “nice increase” from its private wealth base, he added.

LPs committed to the strategy are predominantly from Europe and the US, as well as investors from the Middle East, South America and Asia, he added.

Pantheon was fundraising in what Miller says was a tougher environment than before. “What we're seeing for a lot of people in the industry, including us, is that fundraising takes a little bit longer than it used to,” he said, noting that fundraising can in some cases take 18-24 months.

“Folks are in a lot of cases still getting the amount of capital that they want to get, but it's just taking a little bit longer,” he added.

Sectors in focus

Pantheon is expected to invest in businesses with EV of USD 2.5bn and below, with a focus on areas such as technology, healthcare, financials, industrials and business services via its co-investment strategy.

PGCO V is expected to spend its initial three-year investment period deploying capital on around 50 investments across growth equity, small and mid-cap co-investment opportunities, of which around 60% is expected to be in the US, 20%-30% in Europe, and the remainder in Asia, he said.

A large majority of PGCO V’s deals will involve investing alongside Pantheon’s primary managers, he said, noting that Pantheon currently has pre-existing relationships with around 150 private equity firms globally.

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
  • Topics
  • GPs
  • Investments
  • Healthcare
  • Industrials
  • Technology
  • LPs
  • Pantheon
  • Co-investments

More on GPs

EU foreign subsidies regulations
EU FSR could impact PE fundraising with potential rise in ‘clean funds’

FSR could lead GPs to create funds without foreign LPs; red tape around sovereign wealth funds likely

  • Regulation
  • 01 September 2023
Jan Cerny of BHM Group
BHM Group builds on PE strategy, eyes European medtech and renewable energy acquisitions

Czech Republic-headquartered family office is targeting DACH and CEE region deals

  • Investments
  • 01 September 2023
Bettina Curtze of Redalpine
Redalpine expands leadership team amid CHF 1bn-plus fundraise

Ex-Rocket Internet leader Bettina Curtze joins Swiss VC firm as partner and CFO

  • Venture
  • 31 August 2023
Canary Wharf and the financial centre of London
IPO offers CVC chance to become multi-asset consolidator

Potential IPO also offers monetisation solution for founders and GP stakes investor Blue Owl

  • GPs
  • 25 August 2023

Latest News

Fund closes in US dollars
  • Funds
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote

  • 05 September 2023
Clinical trials and biotechnology
  • Buyouts
Permira to take Ergomed private for GBP 703m

Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO

  • 04 September 2023
Public sector software
  • Exits
Partners Group to release IMs for Civica sale in mid-September

Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017

  • 04 September 2023
EMEA Public to Private M&A
  • Investments
Change of mind: Sponsors take to de-listing their own assets

EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater

  • 04 September 2023
Back to Top
  • About Unquote
  • Advertise
  • Contacts
  • About Acuris
  • Terms of Use
  • Privacy Policy
  • Group Disclaimer
  • Twitter
  • LinkedIn

© Merger Market

© Mergermarket Limited, 10 Queen Street Place, London EC4R 1BE - Company registration number 03879547

Digital publisher of the year 2010 & 2013

Digital publisher of the year 2010 & 2013