REG - Pantheon Intl PLC - Monthly Performance Update

Pantheon InternationalAnnouncement

26/09/2024 07:00

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RNS Number : 7023F  Pantheon International PLC  26 September 2024

26 September 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The information contained in this announcement is restricted and is not for
publication, release or distribution in the United States of America, Canada,
Australia (other than to persons who are both wholesale clients and
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 31 August 2024

 

Performance Update at 31 August 2024

 

485.0p                         NAV per share

-0.2%                           NAV per share
movement for the month

£2.2bn                         Net asset value

+64%                          Total NAV per share
return (5Y)*

£1.5bn                        Market capitalisation

+40%                           Total shareholder
return (5Y)*

£10.4m                        Net portfolio cash flow**

4.0x                             Financing
cover***

 

 

Month to 31 August 2024

 

PIP announced an unaudited net asset value ("NAV") per share of 485.0p as at
31 August 2024, a decrease of -1.0p (-0.2%) from the NAV per share as at 31
July 2024.

In the month to 31 August 2024, valuation gains** were +7.6p (+1.6%),
investment income** added +0.1p (+0.0%), foreign exchange movements** were
-7.9p (-1.6%), share buybacks added +0.2p (+0.0%) and expenses and taxes****
were -1.0p (-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 31 August 2024, 7% of reported valuations
are dated 31 August 2024 or later, 85% are dated 30 June 2024, 6% are dated 31
March 2024 and 2% are dated 31 December 2023. Of the 7% of valuations dated 31
August 2024 or later, 5.4% reflect the mark-to-market fair value adjustment
for PIP's listed company holdings.

At 31 August 2024, PIP's private equity assets stood at £2,470m, whilst net
available cash balances^ were £15m. The Asset Linked Note^^ ("ALN")
outstanding as at 31 August 2024 amounted to £29m. Undrawn commitments to
investments stood at £760m as at 31 August 2024, calculated using exchange
rates at that date. PIP maintains a five-year £500m^^^ multi-tranche,
multi-currency revolving credit facility. As at 31 August 2024, £93m was
drawn down under the credit facility and $150m (£114m GBP equivalent as at
month end) of private placement notes were outstanding, resulting in a net
debt to NAV ratio of 8.5%.^^^^

Net Portfolio Cash Flow

PIP received distributions of £14.2m relative to £3.8m of calls from
existing commitments to private equity funds. Therefore, PIP's portfolio
generated net cash of £10.4m during the month.

 

New Investments

 

During the month, PIP made a £6.2m investment in a manager-led secondary
investment alongside Altamont Capital Partners in Tacala, the largest
franchisee of Taco Bell restaurants in the USA.

 

Share Buybacks

 

PIP invested £1.6m in share buybacks during the month, acquiring 511,500
shares at a weighted average price of 314.4p per share. This price represented
an average discount of 35.6% to the prevailing NAV per share at the time of
the transactions. Of the £5.0m allocated to share buybacks for the quarter,
PIP has invested a total of £2.2m.

 

Quarter to 31 August 2024

 

Performance

 

The unaudited NAV per share of 485.0p as at 31 August 2024 is a decrease of
-5.5p (-1.1%) relative to the NAV per share as at 31 May 2024. Valuation
gains* added +7.8p (+1.6%), investment income* added +1.5p (+0.3%), foreign
exchange movements* were -12.5p (-2.5%), share buybacks added +0.7p (+0.1%)
and expenses and taxes**** were -3.0p (-0.6%).

 

Portfolio Net Cash Flow

 

PIP received distributions of £49.9m relative to £28.4m of calls from
existing commitments to private equity funds. Therefore, PIP's portfolio
generated net cash of £21.5m over the quarter.

 

New Commitments

 

PIP made four new investments during the quarter to 31 August 2024, amounting
to £32.9m in new commitments. These commitments were to one primary fund
(£13.9m), one co-investment (£11.1m) and two manager-led secondaries
(£7.9m).

 

Share Buybacks

 

During the financial quarter ended 31 August 2024, PIP invested £5.8m***** in
share buybacks, acquiring 1,803,803 shares at a weighted average price of
319.0p per share. This price represented an average discount of 34.8% to the
prevailing NAV per share at the time of the transactions.

 

Capital Allocation

 

The adjusted net portfolio cash flow, which is calculated according to PIP's
Capital Allocation Policy, was slightly negative during the twelve months to
31 August 2024. Nevertheless, the PIP Board has allocated a further £5m to
share buybacks. This is in addition to the remaining £2.8m of the £5.0m
allocated to buybacks in the previous quarter.

 

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

** 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 £40.6m as
at 31 August 2024.

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

***** Includes £3.6m of share repurchases that relate to the unused portion
of the £200m FY2024 share buyback programme and that was carried over to the
current financial year.

^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 £500.0m multi-currency credit facility. The overall credit
facility comprises facilities of US$487.7m and €115.7m and had a sterling
equivalent value of £468.5m as at 31 August 2024. As at 31 August 2024, PIP
had drawn down £92.8m 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 9.8% as at 31 August 2024.

 

 

Annualised Performance as at 31 August 2024^^^^^

 

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

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

 NAV per share         5.7%            7.7%       10.5%      12.9%      11.8%
 Ordinary share price  14.7%           3.5%       7.0%       10.7%      10.8%
 FTSE All-Share, TR    17.0%           7.5%       6.6%       6.1%       7.6%
 MSCI World TR, (£)    20.5%           9.1%       11.9%      12.8%      8.7%

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

Discrete Performance as at 31 August 2024

 

                       31/08/2023- 31/08/2024  31/08/2022- 31/08/2023  31/08/2021- 31/08/2022  31/08/2020- 31/08/2021  31/08/2019- 31/08/2020
 NAV per share         5.7%                    -4.1%                   23.2%                   36.4%                   -3.5%
 Ordinary share price  14.7%                   3.0%                    -6.2%                   28.2%                   -1.1%
 FTSE All-Share, TR    17.0%                   5.2%                    1.0%                    26.9%                   -12.6%
 MSCI World TR, (£)    20.5%                   6.7%                    0.9%                    26.8%                   6.8%

 

Largest Holdings

 

Largest companies by value as at 31 May 2024

 

 Company        Country      Sector                  % of portfolio
 Action         Netherlands  Consumer                1.2%
 Kaseya         Switzerland  Information Technology  1.2%
 Visma          Norway       Information Technology  1.1%
 Smile Doctors  USA          Healthcare              0.9%
 Shiftkey       USA          Healthcare              0.8%

 

Largest managers by value as at 31 August 2024

 

 Manager                     Region  % of portfolio
 Insight Partners            USA     7.1%
 HgCapital                   Europe  3.8%
 Index Ventures              Global  3.7%
 Providence Equity Partners  USA     3.1%
 Parthenon Capital           USA     2.4%

 

Foreign Exchange Exposure

 

At 31 August 2024, the value of the private equity investment assets stood at
£2,470m. 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 8%
(expressed as a proportion of PIP's total portfolio) are invested in funds
investing mainly in Europe and approximately 6% (expressed as a proportion of
PIP's total portfolio) in funds investing mainly in Asia.

 

As at 31 August 2024, the GBP/USD exchange rate was 1.31435 and the GBP/EUR
exchange rate was 1.18750.

 

Monthly Report

 

The August 2024 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 / Charlotte Morris / Vicki Bradley

Tel: +44 20 3356 1800

Follow us on
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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 650 clients, with
approximately $67bn in discretionary assets under management (as at 31 March
2024).

 

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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