REG - Pantheon Intl PLC - Monthly Performance Update

Pantheon InternationalAnnouncement

22/03/2024 07:00

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RNS Number : 8709H  Pantheon International PLC  22 March 2024

22 March 2024

 

For immediate release

The information contained in this announcement is restricted and is not for
publication, release or distribution in the United States of America, Canada,
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professional or sophisticated investors in Australia), Japan, the Republic of
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distribution is or may be unlawful.

Pantheon International Plc

("PIP" or the "Company")

 

Performance Update at 29 February 2024

 

Performance Update at 29 February 2024

 

483.9p                         NAV per share

+1.9%                          NAV per share growth
for the month

£2.3bn                         Net asset value

£7.7m                          Net portfolio cash
flow*

4.1x                             Financing cover**

+50%                           Total shareholder
return (5Y)***

 

 

Month to 29 February 2024

 

PIP announced an unaudited net asset value ("NAV") per share of 483.9p as at
29 February 2024, an increase of 9.2p (+1.9%) from the NAV per share as at 31
January 2024.

In the month to 29 February 2024, valuation gains* were +6.5p (+1.4%),
investment income* added +0.2p (0.0%), foreign exchange movements* were +2.5p
(+0.5%), share buybacks added +0.8p (+0.2%) and expenses and taxes**** were
-0.8p (-0.2%).

PIP's valuation policy for private equity funds is based on the latest
valuations reported by the managers of the funds in which PIP has holdings. In
the case of PIP's valuation as at 29 February 2024, 8% of reported valuations
are dated 29 February 2024 or later, 39% are dated 31 December 2023, 51% are
dated 30 September 2023 and 2% are dated 30 June 2023. Of the 8% of valuations
dated 29 February 2024 or later, 7.3% reflect the mark-to-market fair value
adjustment for PIP's listed company holdings.

At 29 February 2024, PIP's private equity assets stood at £2,442m, whilst net
available cash balances^ were £15m. The Asset Linked Note^^ ("ALN")
outstanding as at 29 February 2024 amounted to £28m. Undrawn commitments to
investments stood at £749m as at 29 February 2024, calculated using exchange
rates at that date. PIP maintains a five-year £500m^^^ multi-tranche,
multi-currency revolving credit facility. As at 29 February 2024, £25m was
drawn down under the credit facility. PIP had $150m (£119m GBP equivalent as
at month end) of private placement notes outstanding, resulting in a net debt
to NAV ratio of 5.6%.^^^^

 

Share Buybacks

 

PIP also invested £7.0m in share buybacks during the month, acquiring
2,234,926 shares at a weighted average price of 314.0p per share. This price
represented an average discount of 34.1% to the prevailing NAV per share at
the time of the transactions.

 

Nine months to 29 February 2024

 

Performance

 

The unaudited NAV per share of 483.9p as at 29 February 2024 is an increase of
21.5p (+4.7%) relative to the NAV per share as at 31 May 2023. Valuation
gains* added 14.2p (+3.1%), investment income* added +2.4p (+0.5%), foreign
exchange movements* were -8.1p (-1.7%), share buybacks added +19.6p (+4.2%)
and expenses and taxes**** were -6.6p (-1.4%).

 

Portfolio Net Cash Flow

 

PIP's portfolio generated net cash of £33.2m over the nine-month period, with
distributions of £148.3m relative to £115.1m of calls from existing
commitments to private equity funds.

 

New Commitments

 

PIP made seven new investments during the nine months to 29 February 2024,
amounting to £51.2m in new commitments. These commitments were to three
primary funds (£29.5m) and four co-investments (£21.7m).

 

Financing

 

In October 2023, PIP agreed a new £500m equivalent credit facility and
further announced in January 2024 a private placement of $150m of loan notes.

 

*Figures are stated net of movements associated with the ALN share of the
reference portfolio. Valuation movement includes the mark-to-market fair value
adjustment of listed company holdings.

** Ratio of net available cash, portfolio value and undrawn credit facility to
outstanding commitments. Outstanding commitments relating to funds outside
their investment period (>13 years old) were excluded from the calculation
as there is a low likelihood of these being drawn. This amounted to £43.0m as
at 29 February 2024.

***Based on the change in the ordinary share price over the period.

**** Operating expenses, financing costs and withholding taxes on investment
distributions.

^Net available cash calculated as cash and net current assets / (liabilities)
less undistributed net cashflows associated with the ALN.

^^Unlisted 10-year note issued on 31 October 2017 whose cost and repayments
are linked to a reference portfolio consisting of the Company's older vintage
funds.

^^^PIP maintains a £500m multi-currency credit facility. The overall credit
facility comprises facilities of US$487.7m and €115.7m and had a sterling
equivalent value of £484.5m as at 29 February 2024. As at 29 February 2024,
PIP had drawn down £25m of the credit facility.

^^^^Net debt calculated as borrowings (excluding the outstanding balance of
the Asset Linked Note) less net available cash. The ALN is not considered in
the calculation of gross borrowings or the loan-to-value ratio, as defined in
PIP's credit facility and note agreements. If the ALN is included, net debt to
NAV was 6.9% as at 29 February 2024.

 

Share Buybacks

 

During the nine-month period, PIP invested £175.2m in share buybacks,
acquiring 57,662,470 shares at a weighted average price of 303.9p per share.
This price represented an average discount of 35.5% to the prevailing NAV per
share at the time of the transactions.

 

Annualised Performance as at 29 February 2024^^^^

 

                       1 Year (%p.a.)  3 Years    5 Years    10 Years   Since Inception

                                       (% p.a.)   (% p.a.)   (% p.a.)   (% p.a.)

 NAV per share         4.4%            15.3%      13.8%      13.8%      11.9%
 Ordinary share price  20.3%           9.2%       8.5%       11.4%      10.9%
 FTSE All-Share TR     0.6%            7.8%       5.0%       5.0%       7.3%
 MSCI World (£) TR     20.2%           12.9%      13.4%      12.8%      8.6%

^^^^PIP was launched on 18 September 1987. The performance figures for PIP
assume reinvestment of dividends and capital.

Discrete Performance as at 29 February 2024

 

                       28/02/2019- 29/02/2020  29/02/2020- 28/02/2021  28/02/2021- 28/02/2022  28/02/2022- 28/02/2023  28/02/2023- 29/02/2024
 NAV per share         14.6%                   8.5%                    32.4%                   11.0%                   4.4%
 Ordinary share price  3.3%                    11.8%                   24.6%                   -13.1%                  20.3%
 FTSE All-Share TR     -1.4%                   3.5%                    16.0%                   7.3%                    0.6%
 MSCI World (£) TR     9.6%                    18.8%                   15.9%                   3.2%                    20.2%

 

Largest Holdings

 

Largest managers by value as at 29 February 2024

 

                             Region  % of portfolio
 Insight Partners            USA     7.5%
 Index Ventures              Global  3.7%
 HgCapital                   Europe  3.4%
 Providence Equity Partners  USA     3.2%
 Advent International Group  Global  2.5%

 

 

Largest companies by value as at 30 November 2023

 

                Country      Sector                  % of portfolio
 Action         Netherlands  Consumer                1.2%
 Kaseya         USA          Information Technology  1.0%
 Smile Doctors  USA          Healthcare              1.0%
 ShiftKey       USA          Healthcare              0.9%
 Valantic       Germany      Information Technology  0.8%

 

Foreign Exchange Exposure

 

At 29 February 2024, the value of the private equity investment assets stood
at £2,442m. Of the private equity investment assets at PIP's holding level,
76% were represented by funds reporting values denominated in US dollars, 19%
denominated in euros, 4% denominated in sterling and 1% denominated in other
currencies.

 

Of the 76% of investment assets denominated in US dollars, approximately 7%
(expressed as a proportion of PIP's total portfolio) are invested in funds
investing mainly in Europe and approximately 7% (expressed as a proportion of
PIP's total portfolio) in funds investing mainly in Asia.

 

As at 29 February 2024, the GBP/USD exchange rate was 1.2650 and the GBP/EUR
exchange rate was 1.1689.

 

Monthly Report

 

The February newsletter can be accessed on PIP's website at www.piplc.com
(http://www.piplc.com) in the Investor Relations section under the heading
"Newsletters".

 

This announcement contains inside information.

 

Ends

 

LEI: 2138001B3CE5S5PEE928

 

For more information please visit PIP's website at www.piplc.com or contact:

 

Pantheon

Helen Steers / Vicki Bradley

Tel: +44 20 3356 1800

Jie Gong

Tel: +65 6027 1060

Follow us on
LinkedIn: https://www.linkedin.com/company/pantheon-international-plc
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NOTES

 

PIP

PIP is a listed FTSE 250 private equity investment trust, overseen by
an independent Board of Directors and managed by Pantheon, one of the leading
private equity investment managers globally. PIP offers investors a liquid,
differentiated entry point to the excellent growth potential of global private
equity, with access to the primary, secondary and co-investment opportunities
of some of the best managers in the world. The Company has a track record of
NAV outperformance over the long term and manages risk strategically through
diversification and rigorous selection based on Pantheon's extensive
experience and international platform, and robust investment due diligence and
decision-making processes.

 

Pantheon

PIP is managed and advised by Pantheon, a specialist global private markets
investor. Pantheon has been at the forefront of private markets investing for
more than 40 years, earning a reputation for providing innovative solutions
covering the full lifecycle of investments, across private equity, real assets
and private credit. The firm has partnered with more than 1,000 clients, with
approximately $62bn^^^^^^ in discretionary assets under management (as at 30
September 2023).

 

^^^^^^This figure includes assets subject to discretionary or
non-discretionary management, advice or those limited to a reporting function.

 

Important Information

A copy of this announcement will be available on the Company's website at
www.piplc.com (http://www.piplc.com) . Neither the content of the Company's
website, nor the content on any website accessible from hyperlinks on its
website for any other website, is incorporated into, or forms part of, this
announcement nor, unless previously published by means of a recognised
information service, should any such content be relied upon in reaching a
decision as to whether or not to acquire, continue to hold, or dispose of,
securities in the Company.

John Singer CBE

Chair, Pantheon International Plc

Broadwalk House, Southernhay West, Exeter, Devon EX1 1TS

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