Rated Fund 2013-2017. A fund-of-funds approach with a spread of risk and reward
Set up in 1987, this trust was the first fund of private equity funds to be launched in the UK. These funds, which are run by other managers in different parts of the world, purchase large equity stakes in private companies.
Pantheon International reduces the risk of private equity investment further by spreading its portfolio across different types of funds, maturities and geographical regions and sectors. In 2016 its portfolio was made up of over 2,000 underlying companies and 350 managers. It also makes some direct investments. The lead manager is Andrew Lebus.
Lebus heads a team of over 70 investment professionals. Nearly half of the portfolio is invested in secondary investments, around a third in primary investments and the remainder in co-investments. The portfolio strategy emphasises secondary investments to maintain a mature portfolio profile and thus benefit from the cash distributions that give the trust its financial strength and investment pace.
However, Pantheon's exposure to direct investment in private companies rather than through funds has increased in recent years to around 20 per cent, up from 3 per cent in 2013. These are normally co-investments undertaken alongside private equity managers already known to Pantheon and with successful track records throughout economic cycles.
At the end of 2016, the portfolio was weighted towards companies based in North America (58 per cent) and the stronger northern European economies (27 per cent). Its top sector exposures were to consumer, information technology and healthcare.